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A levered firm has a pretax cost of debt of 6.8 percent and an unlevered cost of capital of 13.4 percent. The tax rate is
A levered firm has a pretax cost of debt of 6.8 percent and an unlevered cost of capital of 13.4 percent. The tax rate is 34 percent, and the cost of equity is 16.06 percent.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
