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What would williamsons weighted average cost of capital be

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Williamson, Inc., has a debt-equity ratio of 2.5. The firm's weighted average cost of capital is 15 percent, and its pretax cost of debt is 10 percent. Williamson is subject to a corporate tax rate of 35 percent.

  1. What is Williamson's cost of equity capital?

  2. What is Williamson's unlevered cost of equity capital?

  3. What would Williamson's weighted average cost of capital be if the firm's debt-equity ratio were .75? What if it were 1.5?

Reference no: EM13576186

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