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Unlevered Cost of Equity Elliott's Cross Country Transportation Services has a capital structure with 25% debt at an 8% interest rate. Its beta is 1.7,
Unlevered Cost of Equity Elliott's Cross Country Transportation Services has a capital structure with 25% debt at an 8% interest rate. Its beta is 1.7, the risk-free rate is 3%, and the market risk premium is 6%. 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. % b. What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places. % C. What is its unlevered cost of equity? Do not round intermediate calculations. Round your answer to two decimal places. %
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