What is the companys unlevered cost of equity capital, Corporate Finance

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What is the companys unlevered cost of equity capital

Problem

Solar Industries has a debt-equity ratio of 1.7. Its WACC is 7.9 percent, and its cost of debt is 5.6 percent. The corporate tax rate is 22 percent.

1. What is the company's cost of equity capital?
2. What is the company's unlevered cost of equity capital?
3. What would the cost of equity be if the debt-equity ratio were 2?
4. What would the cost of equity be if the debt-equity ratio were 1.0?
5. What would the cost of equity be if the debt-equity ratio were zero?

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Corporate Finance: What is the companys unlevered cost of equity capital

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