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3) Corporation C has a debt-equity ratio of 2.7. The firm's weighted average cost of capital is 19.5% and its pretax cost of debt is

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3) Corporation C has a debt-equity ratio of 2.7. The firm's weighted average cost of capital is 19.5% and its pretax cost of debt is 12.5%. The tax rate is 48%. a. What is the company's levered cost of equity? NOTE: Write the number as a percentage. That is, if your answer is 23.54% answer 23.54 . DO NOT USE THE \% SIGN. b. What is the company's unlevered cost of equity? NOTE: Write the number as a percentage. That is, if your answer is 23.54% answer 23.54 . DO NOT USE THE \% SIGN

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