Williamson, Inc., has a debt−equity ratio of 2.47. The company’s weighted average cost of capital is 9 percent, and its pretax cost of debt is 7 percent. The corporate tax rate is 40 percent.

a. What is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity capital           %

b. What is the company’s 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.)

Unlevered cost of equity            %

c. What would the weighted average cost of capital be if the company’s debt−equity ratio were .70 and 1.60? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

 Weighted average

cost of capitalDebt-equity ratio .70 %Debt-equity ratio 1.60 %