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Jersey Jon's has a cost of equity of 14 percent and a pre-tax cost of debt of 2.5 percent. The debt-equity ratio is 1.3. What

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Jersey Jon's has a cost of equity of 14 percent and a pre-tax cost of debt of 2.5 percent. The debt-equity ratio is 1.3. What is the firm's approximate unlevered cost of capital if the firm pays no taxes? Select one: a. 7.50% b. 8.40% c. 17.50% d. 6.20% e. 9.21%

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