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6 6 . The unlevered cost of capital for Red Ryder Inc is 12% Pretax debt costs are 8% . Assuming a debt equity ratio

6 6 . The unlevered cost of capital for Red Ryder Inc is 12% Pretax debt costs are 8% . Assuming a debt equity ratio of 0. 33 , what is the cost of equity ? The tax rate is 34% A 1109 B . 12.6% C. 12.9% D. 13.4 % E. 13.8%

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