If a cost of equity of 14.8% and a pre-tax cost of debt is 7.5%. The debt-equity ratio is .40 and the tax rate is .34. What is the unlevered cost of

If a cost of equity of 14.8% and a pre-tax cost of debt is 7.5%. The debt-equity ratio is .40 and the tax rate is .34. What is the unlevered cost of capital?

Explanation : In order to find the unlevered cost of equity, we need to use M & M Proposition IIwith taxes, the formula of which isRE = R0 + (R0 - RD) * (De/E)*(1-TC)Where , RE= Return on...