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Rosita's has a cost of equity of 13.76 percent and a pretax cost of debt of 8.5 percent. The debt-equity ratio is .60 and the
Rosita's has a cost of equity of 13.76 percent and a pretax cost of debt of 8.5 percent. The debt-equity ratio is .60 and the tax rate is 34 percent. What is Rosita's unlevered cost of capital?
A) 14.08%
B) 14.60%
C) 12.27%
D) 11.83%
E) 13.97%
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