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A business has a cost of equity of 9 . 5 percent and a pretax cost of debt of 5 . 4 percent. The debt

A business has a cost of equity of 9.5 percent and a pretax cost of debt of 5.4 percent. The debt eqity ratio is 0.75 and the tax rate is 25 percent. What is the unlevered cost of capital?

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