### What is brrs unlevered cost of capital

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##### Reference no: EM13877640

Assume the assumptions underlying the APV are relevant. Brakes and Rakes Co. (BRR) has required return on levered equity equal to 20%, required return on debt of 9%, and corporate tax rate of 25%. The required return on the market is 15%. BRR has debt with market value \$30 million and equity with market value \$6 million. What is BRR’s unlevered cost of capital? Show work

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