Average cost of capital be if firm debt equity ratio

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Williamson, Inc. has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent, and it's pretax cost of debt is 6 percent. The tax rate is 35 percent. What would the company's weighted average cost of capital be if the firm's debt equity ratio were .75? What if it were 1.3?

Reference no: EM131554051

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