Question:Question:

Williamson, has a debtequity ratio of 2.55. The company's weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. The corporate tax rate is 30 percent.

a. What is the company's cost of equity capital? ( not round intermediate calculations. answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity capital___ %

b. What is the company's unlevered cost of equity capital? (not round intermediate calculations. answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Unlevered cost of equity____%

c. What would the weighted average cost of capital be if the company's debtequity ratio were .85 and 1.75? ( not round intermediate calculations. answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Weighted average

cost of capital

Debt-equity ratio .85 _____%

Debt-equity ratio 1.75 _____ %