ABC Company has a before-tax cost of debt of 5.94%. The cost of equity of an...

ABC Company has a before-tax cost of debt of 5.94%. The cost of equity of an unlevered firm (Note: cost of equity of unlevered firm = return on assets = cost of capital of the firm's assets = RA) is 17.14%. The D/E ratio is 1.13. What is the cost of equity? Assume a tax rate of 27.4%. Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.

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