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Easy-Tea Corp. has a debt-equity ratio of 1.4. Its WACC is 10%, and its cost of debt is 9%. The corporate tax rate is 330%.
Easy-Tea Corp. has a debt-equity ratio of 1.4. Its WACC is 10%, and its cost of debt is 9%. The corporate tax rate is 330%. What is the firm's unlevered cost of equity capital?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
