Roger, Inc., has a debt-equity ratio of 2.85. The firm’s weighted average cost of capital is 10 percent and its pretax cost of debt is 6 percent. The tax rate is 24 percent. |
a. | What is the company’s cost of equity capital? |
b. | What is the company’s unlevered cost of equity capital? |
c. | What would the company’s weighted average cost of capital be if the company's debt-equity ratio were .25 and 1.85? |
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Roger, Inc., has a debt-equity ratio of 2.85. The firm’s weighted average cost of capital is...
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