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The firm has a debt-equity ratio of 2/3, a cost of equity of 14 percent, and a cost of debt of 6 percent. If there

The firm has a debt-equity ratio of 2/3, a cost of equity of 14 percent, and a cost of debt of 6 percent. If there are no taxes or other imperfections, what is its unlevered cost of equity? Select one: a. 4% b. 10.8% c. 5% d. 7.4%

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