Question: Hi, Thanks in advance : ) Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and
Hi, Thanks in advance : )

Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6 percent. The tax rate is 24 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 firm's debt- equity ratio were .75 and 1.3? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Cost of equity Unlevered cost of equity WACC if debt-equity ratio = .75 WACC if debt-equity ratio = 1.30 % % % C. %
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