Find 4m levered and unlevered cost of capital

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4M Industries has 30 million shares outstanding trading at $20 per share. 4M also has $150 million in outstanding debt. Suppose firm's equity cost of capital is 12%, its debt cost of capital is 5%, and the corporate tax rate is 30%.

Find 4M's levered and unlevered cost of capital.

Reference no: EM132147182

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