What is the estimated unlevered cost of equity

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Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is .4, the tax rate is 34 percent, and the pretax cost of debt is 7.2 percent. What is the estimated unlevered cost of equity?

12.08%

13.06%

12.56%

10.97%

Reference no: EM131059723

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