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› homework-help › questions-andSolved Hewler Corp has debt with both a book and a market ... Oct 09, 2022 · Hewler Corp has debt with both a book and a market value of $400,000. This debt has a coupon rate of 6% and pays interest annually. The expected earnings before interest and taxes are $50,000, the tax rate is 30%, and the unlevered cost of capital is 8%. Calculate the cost of equity for the levered firm according to MM proposition II with taxes.