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Which statement about bankruptcy costs is most likely true? The One - Shot Model for bankruptcy costs assumes a target capital structure. The fraction of

Which statement about bankruptcy costs is most likely true?
The One-Shot Model for bankruptcy costs assumes a target capital structure.
The fraction of the firm lost in bankruptcy can be inferred based on a firm's rating.
The rule-of-thumb for the bankruptcy probability of firms is 30%.
The indirect costs of bankruptcy are larger than the direct cost of bankruptcy.The first task in your job as financial analyst is to update your firm's unlevered cost of capital. The company has a target capital structure of 29%(D/V). The cost of debt is 4.00% and the cost of equity is 10.00%. The marginal tax rate is 30.00%. The current Enterprise Value of the Firm (V) is $10,000. What is the unlevered cost of capital the closest to?

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