Dickson, Inc., has a debt-equity ratio of 2.7. The firm’s weighted average cost of capital is...

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Dickson, Inc., has a debt-equity ratio of 2.7. The firm’sweighted average cost of capital is 11 percent and its pretax costof debt is 7 percent. The tax rate is 21 percent.

  

a.What is the company’s cost of equity capital? (Do notround intermediate calculations and enter your answer as a percentrounded 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 youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)
c.What would the company’s weighted average cost of capital be ifthe company's debt-equity ratio were .40 and 1.70? (Do notround intermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

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Dickson, Inc., has a debt-equity ratio of 2.7. The firm’sweighted average cost of capital is 11 percent and its pretax costof debt is 7 percent. The tax rate is 21 percent.  a.What is the company’s cost of equity capital? (Do notround intermediate calculations and enter your answer as a percentrounded 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 youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)c.What would the company’s weighted average cost of capital be ifthe company's debt-equity ratio were .40 and 1.70? (Do notround intermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

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