Problem 16-25 MM with Taxes Dickson, Inc., has a debt-equity ratio of 2.15. The firm's weighted average cost of capital is 8 percent and its pretax cost of debt is 5 percent. The tax rate is 25 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 .65 and 1.15? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. % 3. b. Cost of equity Unlevered cost of equity WACC if debt-equity ratio = 0.65 WACC if debt-equity ratio = 1.15 17.14 8.87 X % 6.13 % 6.86 % C. x x 16