Yolo ltd has a debt-equity ratio of 14 its wacc is 98 and


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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Finance Basics: Yolo ltd has a debt-equity ratio of 14 its wacc is 98 and
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