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United Company has debt with both a face and a market value of $ 2 , 4 0 0 , 0 0 0 . This

United Company has debt with both a face and a market value of $2,400,000. This debt has a coupon rate of 6 percent and pays interest annually. The expected earnings before interest and taxes are $745,000, the tax rate is 25 percent, and the unlevered cost of capital is 8.8 percent. What is the firm's cost of equity?
A.9.91%
B 10.21%
C 10.51%
D 10.81%
E 11.11%

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