Dickson, Inc
Subject:AccountingPrice:4.87 Bought7
Dickson, Inc., has a debt-equity ratio of 2. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 7 percent. The tax rate is 22 percent points
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 .50 and 1.00? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
