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2. Please consider the following company items: Other items Tax rate 25% Market risk premium 6.0% Unlevered beta 0.60 Risk free rate Target debt/equity

2. Please consider the following company items: Other items Tax rate 25% Market risk premium 6.0% Unlevered beta 0.60 Risk free rate Target debt/equity ratio 0.30 Small firm premium Bond rating BBB Credit spread debt 3.0% 2.0% 1.5% Long term growth Long term ROCB 2.0% 9.0% What is the cost of equity of this company in percentages (%)? Please round your answer to one decimal place, use a period to indicate the decimal place and provide your answer without a percentage sign (e.g. 13.6 instead of 13.6%). Enter answer here 2 points

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