The Border Cafe has a cost of equity of 13.2 percent and a pretax cost of debt of 7.5 percent.The debt-equity ratio is 0.6 and the tax rate is 35 percent.What is the unlevered cost of capital?
A)11.60%
B)12.30%
C)11.97%
D)12.08%
E)10.80%

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The Answer of The Border Cafe has a cost of equity of 13.2 percent and a pretax cost of debt of 7.5 percent.The debt-equity ratio is 0.6 and the tax rate is 35 percent.What is the unlevered cost of capital?
A)11.60%
B)12.30%
C)11.97%
D)12.08%
E)10.80%

The Border Cafe Has a Cost of Equity of 13