Compute firm equivalent unlevered cost of equity

Reference no: EM132778911

Yoyo Sdn Bhd has RM30 million long-term debt outstanding at a cost of 7%. It has 3 million units of shares with a market price of RM 15 per unit. The company's required rate of return on equity is 13% and company tax rate is 25%.

Problem a. Compute firm's equivalent unlevered cost of equity and its overall cost of capital.

Reference no: EM132778911

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