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What is its cost of equity if there are no taxes

Question 1) A firm has a debt-to-equity ratio of .60. Its cost of debt is 8%. Its overall cost of capital is 12%. What is its cost of equity if there are no taxes or other imperfections?

Question 2) Wild Flowers Express has a debt-equity ratio of .60. The pre-tax cost of debt is 9% while the unlevered cost of capital is 14%. What is the cost of equity if the tax rate is 34%?

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Finance Basics: What is its cost of equity if there are no taxes

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Finance Basics: What is its cost of equity if there are no taxes

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