Unlevered Cost of Equity

Elliott's Cross Country Transportation Services has a capital structure with $30\%$ debt at a $7\%$ interest rate. Its beta is $1\mathrm{.}7,$ the

risk$-$free rate is $3\%,$ and the market risk premium is $8\%.$ Elliott's combined federal$-$plus$-$state tax rate is $25\%.$

a$.$ What is Elliott's cost of equity? Do not round intermediate calculations. Round your answer to two decimal places.

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b$.$ What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal

places.

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c$.$ What is its unlevered cost of equity? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$Elliott's Cross Country Transportation Services has a capital structure with $30\%$ debt at a $7\%$ interest rate. Its beta is $1\mathrm{.}7,$ the risk$-$free rate is $3\%,$ and the market risk premium is $8\%.$ Elliott's combined federal$-$plus$-$state tax rate is $25\%.$