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Compass Corporation has a cost of equity of 11.8 percent and a pretax cost of debt of 7.5 percent. The debt-equity ratio is 1.70 and

Compass Corporation has a cost of equity of 11.8 percent and a pretax cost of debt of 7.5 percent. The debt-equity ratio is 1.70 and the tax rate is 25 percent. What is the unlevered cost of capital?

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