What would be the cost of equity if the debt-equity ratio


A company has a debt-equity ratio of 1.5 and a WACC of 10%. The cost of debt is 7%, and the corporate tax rate is 35%.

What is the company's cost of equity?

What is the company's unlevered cost of equity?

What would be the cost of equity if the debt-equity ratio were 2? What if it were 1? What if it were 0?

 

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Finance Basics: What would be the cost of equity if the debt-equity ratio
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