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A company has a debt-equity ratio of 1.40. Its WACC is 8.5 percent, and its pretax cost of debt is 7%. The corporate tax rate
A company has a debt-equity ratio of 1.40. Its WACC is 8.5 percent, and its pretax cost of debt is 7%. The corporate tax rate is 25%. What is the company's unlevered cost of equity capital?
8.67%
9.95%
11.12%
12.29%
13.46%
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