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Williamsen GmbH has a debt to equity ratio of 2 . 5 . The firm s weighted average cost of capital is 1 5 per
Williamsen GmbH has a debt to equity ratio of The firms weighted average cost of capital is per cent, and its cost of debt is per cent. Suppose that there is no corporate tax.
a What is Williamsens cost of equity capital?
b What is Williamsens unlevered cost of equity capital?
c What would Williamsens weighted average cost of capital be if the firm was
unlevered?
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