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The unlevered cost of capital (r U ) of a firm is The weighted average of the equity cost of capital (r E ) and

The unlevered cost of capital (rU) of a firm is

  1. The weighted average of the equity cost of capital (rE) and debt cost of capital (rD)
  2. The overall cost of capital if the company has no debt
  3. Also known as the asset cost of capital (rA)
  4. All of the above

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