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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-equity ratio is 1.25 and

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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-equity ratio is 1.25 and the tax rate is 25 percent. What is the unlevered cost of capital? 7.26% 7.39% 7.52% 7.65% 7.78%

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