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    Calculating unlevered cost of capital

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    The Green Paddle has a cost of equity of 13.73 percent and a pre-tax cost of debt of 7.6 percent. the debt-equity ratio is 0.65 and the tax rate is 32 percent. What is green paddle's unlevered cost of capital?

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    ru=unlevered cost of capital=?
    Debt to equity ratio=D=0.65
    Tax ...

    Solution Summary

    Solution describes the steps to calculate unlevered cost of capital in the given case.