Shadow Corp. has no debt but can borrow at 6.4 percent. The firm’s WACC is currently...

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Shadow Corp. has no debt but can borrow at 6.4 percent. Thefirm’s WACC is currently 9.7 percent and the tax rate is 22percent.
a. What is the company’s cost of equity? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b. If the firm converts to 25 percent debt, what will its costof equity be? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)
c. If the firm converts to 50 percent debt, what will its costof equity be? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)
d-1. If the firm converts to 25 percent debt, what is thecompany’s WACC? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)
d-2. If the firm converts to 50 percent debt, what is thecompany’s WACC? (Do not round intermediate calculations. Enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Shadow Corp. has no debt but can borrow at 6.4 percent. Thefirm’s WACC is currently 9.7 percent and the tax rate is 22percent.a. What is the company’s cost of equity? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b. If the firm converts to 25 percent debt, what will its costof equity be? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)c. If the firm converts to 50 percent debt, what will its costof equity be? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)d-1. If the firm converts to 25 percent debt, what is thecompany’s WACC? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.)d-2. If the firm converts to 50 percent debt, what is thecompany’s WACC? (Do not round intermediate calculations. Enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)