What would the companys weighted average cost of capital be


Williamson, Inc. has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent, and it's pretax cost of debt is 6 percent. The tax rate is 35 percent. What would the company's weighted average cost of capital be if the firm's debt equity ratio were .75? What if it were 1.3?

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Financial Management: What would the companys weighted average cost of capital be
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