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Solving for Unlevered Cost of Equity given levered cost of equity. Here's what I have solved for (including all information needed to answer) D/E Ratio:

Solving for Unlevered Cost of Equity given levered cost of equity.

Here's what I have solved for (including all information needed to answer)

D/E Ratio: .7

Weighted Average Cost of Capital: .093

Cost of Debt: .064

Tax Rate = .24

Weight of Debt: .41

Weight of Equity = .59

.093=.59CostofEquity+.41.064.76

Cost of Equity (Levered): .1241

To find Unlevered Cost of Equity, Ru, the formula is

.1241=Ru+(Ru-.064)(.7)(.76) (solve for Ru)

I don't know how to solve this algebraically. Please help.

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