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Firm unlevered cost of equity capital

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Caer en Picado has a debt-equity ratio of 2.6. Its WACC is 14.0% and its cost of debt is 11.5%. The corporate tax rate is 33.0%. Assume that that the firm exists in a world with no costs of financial distress or other market imperfections (other than corporate taxes). What is the firm's unlevered cost of equity capital?

Reference no: EM132798274

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