Prescription Express has a debt-equity ratio of . The pre-tax cost of debt is 8.5 percent while the unlevered cost of capital is 15 percent.
Prescription Express has a debt-equity ratio of .70. The pre-tax cost of debt is 8.5 percent while the unlevered cost of capital is 15 percent. What is the cost of equity if the tax rate is 35 percent?
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