A firm has debt with both a face and a market value of, Ask an Expert

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A firm has debt with both a face and a market value of $12,000. This debt has a coupon rate of 6% and pays interest annually. The expected earnings before interst and taxes are $2,100, the tax rate is 30%, and the unlevered coast of capital is 11.7 percent. What is the firm's cost of equity?

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