What is the cost of equity

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Reference no: EM131500015

The Outlet has an unlevered cost of capital of 14.2 percent, a tax rate of 35 percent, and expected earnings before interest and taxes of $23, 400. The company has $23,000 in bonds outstanding that have a coupon rate of 7 percent. The bonds are selling at par. What is the cost of equity?

Reference no: EM131500015

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