Company debt-equity ratio

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Williamson, inc. has a debt-equity ratio of 2.43. the company's weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. the corporate tax rate is 30 percent.

What would the weighted average cost of capital be if the company's debt-equity ratio were .65 and 1.80? (Do not round intermediate calculations. Enter answer as a percent rounded to 2 decimal places.)

Reference no: EM131863413

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