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P 1 0 . 4 Unlevering the Equity Cost of Capital - Low Leverage & High Leverage Companies: Below, we show the information for two

P10.4 Unlevering the Equity Cost of Capital-Low Leverage & High Leverage Companies: Below, we show the information for two potential comparable companies. Calculate the unlevered cost of capital based on the following assumptions. Neither company expects its free cash flows to grow.
\table[[,\table[[Low Leverage],[Company]],\table[[High Leverage],[Company]]],[Income tax rate for interest (T/INT)..........................,35.0%,45.0%
P10.4 Unlevering the Equity Cost of Capital-Low Leverage & High Leverage Companies: Below, we show the information for two potential comparable companies. Calculate the unlevered cost of capital based on the following assumptions. Neither company expects its free cash flows to grow.
\table[[,\table[[Low Leverage],[Company]],\table[[High Leverage],[Company]]],[Income tax rate for interest (T/INT)..........................,35.0%,45.0%

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