Calculate the unlevered cost of capital for abc corp

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ABC Corp currently has a debt to enterprise value ratio of 25%. The firm's cost of equity is 11.1% and its cost of debt is 3.5%. Assuming perfect markets, calculate the unlevered cost of capital for ABC Corp. Express the answer in percent and round to two decimals (do not include the %-symbol in the answer).

Reference no: EM132693254

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