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Kazeem Metals Company has a debt ratio of 30%. Interest rate on its debt is 9%. Its unlevered beta is 1.3 and tax rate is

Kazeem Metals Company has a debt ratio of 30%. Interest rate on its debt is 9%. Its unlevered beta is 1.3 and tax rate is 40%. Suppose that the riskfree interest rate is 5% and the required rate of return on the market is 12%. Calculate Kazeem's cost of unlevered equity (i.e. rEU). 16.34 15.89 16.44% 14.21% None of the above

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