• Williamson, Inc., has a debt equity ratio of 2.43. The company weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. The corporate tax rate is 22 percent. a. what is the companys cost of equity capital? b. what is the companys unlevered cost of equity capital ? c. what would the weighted average cost of capital be if the company's debt equity ratio were .65 and 1.80?

  
  

Answer rating: 100% (QA)

a To calculate the companys cost of equity capital we can use the formula for the weighted average cost of capital WACC and the given information WACC ... View the full answer