Calculate the unlevered cost of capital for xyz

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XYZ Corp has a market capitalization of $329 million, a market value of debt of $90 million and no excess cash. You estimate that the cost of equity for this firm is 10.7% and its cost of debt is 4.3%. Calculate the unlevered cost of capital for XYZ. Express the answer in percent and round to two digits (do not include the %-symbol in the answer).

Reference no: EM132681604

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