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HCB, Inc. stock has a beta of 1.3. It is currently financed with 30% debt and 70% equity. The risk-free rate rate is 3% and

HCB, Inc. stock has a beta of 1.3. It is currently financed with 30% debt and 70% equity. The risk-free rate rate is 3% and the market risk premium is 4.2%. HCB's tax rate is 25%. Using the Hamada model, calculate HCB's unlevered cost of equity.

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