Williamson, Inc., has a debtequity ratio of 2.54. The firms weighted average cost of capital is 9 percent, and its pretax cost of debt is 7 percent. Williamson is subject to a corporate tax rate of 40 percent.

a.	What is Williamsons cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Cost of equity capital

%

b.	What is Williamsons unlevered cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Unlevered cost of equity

%

c.	What would Williamsons weighted average cost of capital be if the firms debtequity ratio were .80 and 1.70? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Weighted average cost of capital
Debtequity ratio .80	%
Debtequity ratio 1.70	%