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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Williamson, Inc., has a debt-to-equity ratio of 2.43. The firmAc€?cs weighted average cost of capital is 11 percent, and its pretax cost of debt is 5 percent. Williamson is subject to a corporate tax rate of 30 percent. |
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a. | What is WilliamsonAc€?cs cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
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  Cost of equity capital | % |
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b. |
What is WilliamsonAc€?cs unlevered cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
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  Unlevered cost of equity | % |
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c. |
What would WilliamsonAc€?cs weighted average cost of capital be if the firmAc€?cs debt-to-equity ratio were .65 and 1.80? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) |
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 | Weighted average cost of capital |
  DebtAc€?oequity ratio .65 | % |
  DebtAc€?oequity ratio 1.80 | % |
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