What is the cost of equity

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Williamson, Inc., has a debt-equity ratio of 2.5. The firm's WACC is 10%, and its pretax cost of debt is 6%. The tax rate is 35%.

a. What is the cost of equity?

b. What is the unlevered cost of equity?

c. What would the WACC if the debt to equity ratio were 0.75? 1.5?

Reference no: EM133110264

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