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Dickson, Incorporated, has a debt - equity ratio of 2 . 6 . The firm's weighted average cost of capital is 9 percent and its

Dickson, Incorporated, has a debt-equity ratio of 2.6. The firm's weighted average cost of
capital is 9 percent and its pretax cost of debt is 7 percent. The tax rate is 24 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 weighted average cost of capital be if the company's debt-
equity ratio were .50 and 1.60?(Do not round intermediate calculations and enter
your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
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