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Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
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Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008

Show transcribed image text Williamson, Inc., has a debt-equity ratio of 2.44. The firm?s weighted average cost of capital is 9 percent, and its pretax cost of debt is 7 percent. Williamson is subject to a corporate tax rate of 40 percent. a. What is Williamson?s cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity capital % b. What is Williamson?s unlevered cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Unlevered cost of equity % c. What would Williamson?s weighted average cost of capital be if the firm?s debt?equity ratio were .60 and 1.75? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Weighted average cost of capital Debt-equity ratio .60 % Debt-equity ratio 1.75 %
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