Unlevered Cost of Equity Elliott's Cross Country Transportation Services has a capital structure with 30% debt at a 10% interest rate. Its beta is 1.2, the risk-free rate is 4%, and the market risk premium is 8%. Elliott's combined federal-plus-state tax rate is 25%. a. What is Elliott's cost of equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places. % c. What is its unlevered cost of equity? Do not round intermediate calculations. Round your answer to two decimal places. %
