Hilltop paving has a levered equity cost of capital of 1492
Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is .4, the tax rate is 34 percent, and the pretax cost of debt is 7.2 percent. What is the estimated unlevered cost of equity?
12.08%
13.06%
12.56%
10.97%
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