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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%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91784119

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