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What is the current risk-free rate

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The NuPress Valet Co. has a cost of equity of 12.6%, a pre-tax cost of debt of 7.7%, and a marginal tax rate of 36%. The common equity of NuPress currently carries a beta of 1.4, its D/E ratio is 0.67, and the expected return on the market is 10.2%.

What is the current risk-free rate? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

Reference no: EM131710235

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