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ABC Corp currently has a debt to enterprise value ratio of 56%. The firm's cost of equity is 11.5% and its cost of debt is

ABC Corp currently has a debt to enterprise value ratio of 56%. The firm's cost of equity is 11.5% and its cost of debt is 3.5%. Assuming perfect markets, calculate the unlevered cost of capital for ABC Corp. Express your answer in percent and round to two decimals (do not include the %- symbol in your answer)

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Fundamentals of Corporate Finance

Authors: Richard Brealey, Stewart Myers, Alan Marcus

8th edition

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