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Question 16 Caer en Picado has a debt-equity ratio of 2.6. Its WACC is 14.0% and its cost of debt is 11.5%. The corporate tax

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Question 16 Caer en Picado has a debt-equity ratio of 2.6. Its WACC is 14.0% and its cost of debt is 11.5%. The corporate tax rate is 33.0%. Assume that that the firm exists in a world with no costs of financial distress or other market imperfections (other than corporate taxes). What is the firm's unlevered cost of equity capital? a. 20.02% b. 16.68% c. 18.38% d. 19.19% e. 17.26%

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