This paper circulates around the core theme of FIN 323 – Crosby Industries has a debt-equity ratio of 1.4. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Crosby Industries has a debt-equity ratio of 1.4. Its WACC is 14 percent, and its cost of debt is 9 percent. There is no corporate tax.Requirement 1:What is Crosbyâs cost of equity capital? (Do not round intermediate calculations. Input your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity% Requirement 2:(a)What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations. Input your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity% (b)What would the cost of equity be if the debt-equity ratio were 0.4? (Do not round intermediate calculations. Input your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity% (c)What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations. Input your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)http://lectures.mhhe.com/connect/0077511204/guided_examples/Chapter%2013/13-10.mp4 Cost of%