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Williamson, Inc., has a debtequity ratio of 2.57. The company's weighted average cost of capital is 9 percent, and its pretax cost of debt is

Williamson, Inc., has a debtequity ratio of 2.57. 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 companys 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 companys 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 companys weighted average cost of capital be if the company's debtequity ratio were .65 and 1.60? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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