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Calculate ABC unlevered cost of capital

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Question - BD Corp. has a market capitalization of $300 million and a beta of 0.75. It has $75 million in outstanding debt and its debt beta is 0.20. The risk-free rate is 3% and the market risk-premium is 5%. Calculate ABC's unlevered cost of capital. Please show all of your work.

Reference no: EM133018431

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