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Unlevered Cost of Equity Elliott's Cross Country Transportation Services has a capital structure with 30% debt at an 8% interest rate. Its beta is 1.2,

Unlevered Cost of Equity

Elliott's Cross Country Transportation Services has a capital structure with 30% debt at an 8% interest rate. Its beta is 1.2, the risk-free rate is 3%, and the market risk premium is 6%. Elliott's combined federal-plus-state tax rate is 25%.

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

    %

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

    %

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

    %

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