Question: Question (4) Wlt, Inc. has debt with both a face and a market value of $3,000. This debt has a coupon rate of 7% and

Question (4) Wlt, Inc. has debt with both a face and

Question (4) Wlt, Inc. has debt with both a face and a market value of $3,000. This debt has a coupon rate of 7% and pays interest annually. The expected earnings before interest and taxes is $1,200, the tax rate is 34%, and the unlevered cost of capital is 12%. What is the firm's A 13.25% 2 cost of equity? B. 13.89% C. 13.92% D. 14.14% E. 14.25%

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