What is williamsons unlevered cost of equity capital

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Williamson, Inc. has a debt-toequity ratio of 2.44. The firm's weighted average cost of capital is 9%. and its pretax cost of debt is 7%. Williamson is subject to a corporate tax rate of 40%.

A) What is Williamson's cost of equity capital? Round to 2 decimal places. Do not round intermediate calculations.

B) What is Williamson's unlevered cost of equity capital? Round to 2 decimal places. Do not round intermediate calculations.

C) What would Williamson's weighted average cost of capital be if the firm's debt-to-equity ratio were .60 and 1.75? Round to 2 decimal places. Do not round intermediate calculations.

Reference no: EM131178119

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