Problem:
Weston Industries has a debt-equity ratio of 1.5. Its WACC is 9.2 percent, and its cost of debt is 6%. The Corporate tax rate is 35%.
Required:
Question 1: What is Weston's cost of equity capital?
Question 2: What is Weston's unlevered cost of equity capital?
Question 3: What would the cost of equity be if the debt-equity were 2?
Question 4: What would the cost of equity be if the debt-equity ratio were 1?
Question 5: What would the cost of equity be if the debt-equity ratio were 0?
Note: Please solve the given numerical and provide appropriate solution.