Blitz industries has a debt-equity ratio of 1.7. its wacc is 7.9 percent, and its cost of debt is 5.6 percent. the corporate tax rate is 22 percent.

a. what is the company’s cost of equity capital? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
b. what is the company’s unlevered cost of equity capital? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-1. what would the cost of equity be if the debt-equity ratio were 2? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-2. what would the cost of equity be if the debt-equity ratio were 1.0? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-3. what would the cost of equity be if the debt-equity ratio were zero? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.