Question: right now Right now, PP Co. has a capital structure that consists of 20 percent debt and sh percent equity, based en market values. The

right now

Right now, PP Co. has a capital structure that consists of 20 percent debt and sh percent equity, based en market values. The risk-free rate is 6 percent and the market risk premium is 5 yercent. The compuny can borrow at risk-free rate. Currently the company's cost of equity, which is based ba the CAPM, is 12 percent and its tax rate is 40 percent. What is PP Co's unlevered cost of equity capital? 13.7% 14.23% 11.22% 10.8% 14.65%

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