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3. (10 points) DongHwa Co. has 32 million shares outstanding trading for $9 per share. In addition, DongHwa has $85 million in outstanding debt.

3. (10 points) DongHwa Co. has 32 million shares outstanding trading for $9 per share. In addition, DongHwa has $85 million in outstanding debt. Suppose DongHwa's equity cost of capital is 13%, its debt cost of capital is 9%, and the corporate tax rate is 32%. (1) What is DongHwa's unlevered cost of capital? (3 points) (2) What is DongHwa's after-tax debt cost of capital? (3 points) (3) What is DongHwa's weighted average cost of capital? (4 points)

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