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The cost of equity of an unlevered firm (Note: cost of equity of unlevered firm...

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Finance

The cost of equity of an unlevered firm (Note: cost of equity of unlevered firm = return on assets = cost of capital of the firm's assets = RA) is 17.47%. Assume no taxes. ABC Company has a cost of equity of 23.6% and a D/E Ratio of 3.55. What is the before-tax cost of debt?

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