What is the companys cost of equity capital what is the


Yolo, Ltd. has a debt-equity ratio of 1.4. Its WACC is 9.8% and its cost of debt is 7.5%. The corporate tax rate is 35%.

What is the company’s cost of equity capital?

What is the company’s unlevered cost of equity capital?

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 1?

What would the cost of equity be if the firm converts to 100% equity?

What would be the firm’s WACC if the firm uses 50% debt?

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