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?
a. 10.26%
b. 10.83%
c. 11.32%
d. 12.71%
e. 13.89%