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Dickson, Inc., has a debt-equity ratio of 2.45. The firm's weighted average cost of capital Is 10 percent and its pretax cost of debt is
Dickson, Inc., has a debt-equity ratio of 2.45. The firm's weighted average cost of capital Is 10 percent and its pretax cost of debt is 8 percent. The tax rate is 21 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. What would the company's welghted average cost of capital be if the company's debt- equity ratio were 65 and 1.45? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of equity b. Unlevered cost of equity o WACC if debt-equity ratio = 0.65 WACC if debt-equity ratio = 1.45
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