(Solution) - Calculating WACC Maxwell Industries has a debt equity ratio of 1 -(2025 Original AI-Free Solution)

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Calculating WACC Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 percent. The corporate tax rate is 35 percent.
a. What is Maxwell?s cost of equity capital?
b. What is Maxwell?s un-levered cost of equity capital?
c. What would the cost of equity be if the debt-equity ratio were 2? What is it were 1.0? What if it were zero?