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The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%. The company is 1/3 debt financed.

The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%.

The company is 1/3 debt financed.

The Unlevered Cost of Equity is:

A.
8%

B.
11%

C.
6%

D.
10%

E.
12%

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	A.	8%
	B.	11%
	C.	6%
	D.	10%
	E.	12%