SSU is currently a levered firm with a debt-equity ratio of 0.35 and a pretax cost of debt of 6.2%. The firm has a cost

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answerhappygod
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SSU is currently a levered firm with a debt-equity ratio of 0.35 and a pretax cost of debt of 6.2%. The firm has a cost

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SSU is currently a levered firm with a debt-equity ratio of 0.35
and a pretax cost of debt of 6.2%. The firm has a cost of equity of
12.60%. The firm is considering switching to an all equity firm.
What will the firm's cost of equity be if it makes the switch?
Ignore taxes.
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