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The Backwoods Lumber Co . has a debt - equity ratio of . 8 0 . The firm's return on assets is 1 2 %

The Backwoods Lumber Co

.

has a debt

-

equity ratio of

. 80 .

The firm's return on assets is

12 %

and its levered cost of equity is

15.68 % .

What is unlevered cost of equity assuming no taxes?

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