Crosby industries has a debt-equity ratio of 17 its wacc is


Crosby Industries has a debt-equity ratio of 1.7. Its WACC is 11 percent, and its cost of debt is 8 percent. There is no corporate tax. What would the cost of equity be if the debt-equity ratio were 2? What would the cost of equity be if the debt-equity ratio were 0.7? What would the cost of equity be if the debt-equity ratio were zero?

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Financial Management: Crosby industries has a debt-equity ratio of 17 its wacc is
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