Question: Question 2 ABC Corp currently has a debt to enterprise value ratio of 26%. The firm's cost of equity is 9.8% and its cost of

Question 2

ABC Corp currently has a debt to enterprise value ratio of 26%. The firm's cost of equity is 9.8% and its cost of debt is 4.8%. Assuming perfect markets, calculate the unlevered cost of capital for ABC Corp. Express your answer in percent and round to two decimals (do not include the %-symbol in your answer).

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