Assume the assumptions underlying the apv are relevant


Assume the assumptions underlying the APV are relevant. Brakes and Rakes Co. (BRR) has required return on levered equity equal to 20%, required return on debt of 9%, and corporate tax rate of 25%. The required return on the market is 15%. BRR has debt with market value $30 million and equity with market value $6 million. What is BRR’s unlevered cost of capital? Show work

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Financial Management: Assume the assumptions underlying the apv are relevant
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