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WACC

The corporation has no debt but can borrow at 7%. The firms WACC is currently 10% with no corporate tax.

1. So what's the cost of equity?

2. Whats the cost of equity at 30% or 60% and what's the WACC?

Thanks for the help!

Solution Summary

The corporation has no debt but can borrow at 7%. The firms WACC is currently 10% with no corporate tax. This solution responds to the questions: So what is the cost of equity? What is the cost of equity at 30% or 60% and what's the WACC?

$2.19