Twice Shy Industries has a debt−equity ratio of 1.7. Its WACC is 9.6 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent.

a. What is the company’s cost of equity capital?

  Cost of equity capital ______ 18.18 %  

b. What is the company’s unlevered cost of equity capital?

  Unlevered cost of equity capital _______________%  

c-1. What would the cost of equity be if the debt−equity ratio were 2?

  Cost of equity __________________%  

c-2. What would the cost of equity be if the debt−equity ratio were 1.0?

    Cost of equity _______________%

c-3. What would the cost of equity be if the debt−equity ratio were zero?

  Cost of equity _________________%