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Williamson, Inc., has a debt-to-equity ratio of 2.58. The firms weighted average cost of capital is 11 percent, and its pretax cost of debt is
Williamson, Inc., has a debt-to-equity ratio of 2.58. The firms weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. Williamson is subject to a corporate tax rate of 30 percent.
a. | What is Williamsons cost of equity capital?
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