Dickson, Inc., has a debt-equity ratio of 2.45. The firm's weighted average cost of capital is 10

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Dickson, Inc., has a debt-equity ratio of 2.45. The firm's weighted average cost of capital is 10 percentand its pretax cost of debt is 8 percent. Thetax rate is 21 percent.

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 .65 and 1.45?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Posted Date: May 18, 2024 07:09 PM

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Dickson, Inc., has a debt-equity ratio of 2.45. The firm's weighted average cost of capital is 10

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