Brown Industries has a debt-equity ratio of 12. Its WACC is 11 percent, and its cost of debt is 5 percent. There is no corporate tax.
a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, ag.32.16)
b.t. What would the cost of equity be if the debt-equity ratio were 27 (Do not round Intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32)
b-2. What would the cost of equity be if the debt-equity ratio were 77 (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, eg, 32.16)
b-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round Intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32)
