Skillet Industries has the debt-equity ratio of 1.3. Its WACC is 7.1%, and its cost of debt is 6.6%. Corporate tax rate is 35%.
a. Determine company's cost of equity capital?
b. Compute company's unlevered cost of equity capital?
c. What would cost of equity be if debt-equity ratio were 2?
d. Find cost of equity be if the debt-equity ratio were 1.0?
e. Find cost of equity be if debt-equity ratio were zero?