FIN 36053-Crosby Industries has a debt-equity ratio of 1.5
January 13th, 2018
Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 8.5 percent, and its cost of debt is 6 percent. There is no corporate tax.What is Crosby’s cost of equity capital?What would the cost of equity be if the debt-equity ratio were 2.0?What would the cost of equity be if the debt-equity ratio were 0.5?What would the cost of equity be if the debt-equity ratio were zero?