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Taro Inc. has expected EBIT = $9,000, and debt value of $15,000 at a 8% interest rate. The market value of the firm is $60,000.

Taro Inc. has expected EBIT = $9,000, and debt value of $15,000 at a 8% interest rate. The market value of the firm is $60,000. If the tax rate is 34%, what is Taro's unlevered cost of capital?

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