Crosby industries has a debtndashequity ratio of 12 its, Ask an Expert

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Crosby Industries has a debt–equity ratio of 1.2. Its WACC is 13 percent, and its cost of debt is 4 percent. There is no corporate tax.

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, e.g., 32.16.)

What would the cost of equity be if the debt–equity ratio were .5?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92167000

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