Chapter 16 - Review Problems (Grad... G Saved Help Save & Exit Submit Check my work Problem 16-25 MM with Taxes 20 points Dickson, Inc., has a debt-equity ratio of 1.95. The firm's weighted average cost of capital is 9 percent and its pretax cost of debt is 6 percent. The tax rate is 21 percent. eBook 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.) b. What is the company's unlevered 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.) c. What would the company's weighted average cost of capital be if the company's debt- equity ratio were .45 and .95? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) References a. Cost of equity b. Unlevered cost of equity c. WACC if debt-equity ratio = 0.45 WACC if debt-equity ratio = 0.95