Question: Al's Pub has debt with both a book and a market value of $120,000. This debt has a coupon rate of 9% and pays interest

Al's Pub has debt with both a book and a market value of $120,000. This debt has a coupon rate of 9% and pays interest annually. The expected earnings before interest and taxes are $42,600, the tax rate is 34%, and the unlevered cost of capital is 11%. What is the firm's cost of equity

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