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5. Assume that there are no taxes, no transaction costs and interest rate on corporate borrowing and individual borrowing is same. Also assume that the

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5. Assume that there are no taxes, no transaction costs and interest rate on corporate borrowing and individual borrowing is same. Also assume that the market is efficient. Now consider a firm with the following characteristics: 4 points Tk. 100 million Assets Debt Tk. 50 million Equity Tk. 50 million Cost of its equity is 20% Cost of debt is 10% Find out the cost of its unlevered equity. Find out its weighted average cost of capital a. b

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