What is the companys cost of equity capital

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Question: Dickson, Incorporated, has a debt-equity ratio of 2.85. 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 company's debt-equity ratio were .25 and 1.85?

Reference no: EM133291069

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