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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?

What is Williamsons unlevered cost of equity capital?

.

What would Williamsons weighted average cost of capital be if the firms debt-to-equity ratio were .70 and 1.65?

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