(Answered) Maxwell industries has a debt-equity ratio of 15 its wacc

Finance

Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 11 %, and its cost of debt is 8 %. The corporate tax rate is 35 %.

D/E = 1.5
RA = 11 %
RD = 8 %
tax rate = 35 %

(a) what is Maxwell's cost of equity capital?

(b) What is Maxwell's unlevered cost of equity capital?

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