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Show work Williamson, Inc., has a debt-equity ratio of 2.51. The company's weighted average cost of capital is 9 percent, and its pretax cost of

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Williamson, Inc., has a debt-equity ratio of 2.51. The company's weighted average cost of capital is 9 percent, and its pretax cost of debt is 7 percent. The corporate tax rate is 40 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.) Cost of equity capital 21.050 % 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.) Unlevered cost of equity 12.610 % c. What would the company's weighted average cost of capital be if the company's debt-equity ratio were .70 and 1.55? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Weighted average cost of capital Debt-equity ratio = .70 Debt-equity ratio = 1.55 10.530 % 9.54 0 %

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