Dickson, Inc., has a debt-equity ratio of 2.05. The firm’s weighted average cost of capital is 11...

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Finance

Dickson, Inc., has adebt-equity ratio of 2.05. The firm’s weighted average cost ofcapital is 11 percent and its pretax cost of debt is 8 percent. Thetax rate is 23 percent.

a. What is thecompany’s cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b. What is thecompany’s unlevered cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c. What wouldthe company’s weighted average cost of capital be if the company'sdebt-equity ratio were .55 and 1.05? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

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a The cost of capital for the company is DE 205 LET E 1 DA 205305 EA 1305 SO WACC IS 011 205305 008 1 TAX RATE 1305 Re or 011 See Answer

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Dickson, Inc., has adebt-equity ratio of 2.05. The firm’s weighted average cost ofcapital is 11 percent and its pretax cost of debt is 8 percent. Thetax rate is 23 percent. a.What is thecompany’s cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b.What is thecompany’s unlevered cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)c.What wouldthe company’s weighted average cost of capital be if the company'sdebt-equity ratio were .55 and 1.05? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

a.	What is thecompany’s cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b.	What is thecompany’s unlevered cost of equity capital? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c.	What wouldthe company’s weighted average cost of capital be if the company'sdebt-equity ratio were .55 and 1.05? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)