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3) Corporation C has a debt-equity ratio of [29/10]. The firm's weighted average cost of capital is 23.5% and its pretax cost of debt is
3) Corporation C has a debt-equity ratio of [29/10]. The firm's weighted average
cost of capital is 23.5% and its pretax cost of debt is 10.5% The tax rate is
46%.
- 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.
- What is the company's unlevered cost of equity?
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