Williamson, Inc. has a debt-toequity ratio of 2.44. The firm's weighted average cost of capital is 9%. and its pretax cost of debt is 7%. Williamson is subject to a corporate tax rate of 40%.
A) What is Williamson's cost of equity capital? Round to 2 decimal places. Do not round intermediate calculations.
B) What is Williamson's unlevered cost of equity capital? Round to 2 decimal places. Do not round intermediate calculations.
C) What would Williamson's weighted average cost of capital be if the firm's debt-to-equity ratio were .60 and 1.75? Round to 2 decimal places. Do not round intermediate calculations.