Problem: Braxton Corp. has no debt but can borrow at 6.2 percent. The firm's WACC is currently 8 percent, and the tax rate is 35 percent.

Required:

Question 1: What is the company's cost of equity?

Question 2: If the firm converts to 20 percent debt, what will its cost of equity be?

Question 3: If the firm converts to 50 percent debt, what will its cost of equity be?

Question 4: If the firm converts to 20 percent debt, what is the company's WACC?

Question 5: If the firm converts to 50 percent debt, what is the company's WACC?

Please show steps how you get an answer and please be clear in your explanation.