Calculate the unlevered cost of capital for abc corp

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ABC Corp currently has a market capitalization of $403 million, a market value of debt of $90 million and no excess cash. The firm's cost of equity is 11.9% and its cost of debt is 3.4%. Assuming perfect markets, calculate the unlevered cost of capital for ABC Corp. Express the answer in percent and round to two decimals.

Reference no: EM132693259

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