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Williamson, Inc., has a debt-equity ratio of 2.60. The company's weighted average cost of capital is 9 percent, and its pretax cost of debt is
Williamson, Inc., has a debt-equity ratio of 2.60. 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 25 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.)
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