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Dickson, Inc., has a debt-equity ratio of 2.7. The firms weighted average cost of capital is 11 percent and its pretax cost of debt is
Dickson, Inc., has a debt-equity ratio of 2.7. The firms weighted average cost of capital is 11 percent and its pretax cost of debt is 7 percent. The tax rate is 21 percent.
What would the companys weighted average cost of capital be if the company's debt-equity ratio were .40 and 1.70?
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