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Q.3 Unida Systems has 39 million shares outstanding trading for $10 per share. In addition, Unida has $86 million in outstanding debt. Suppose Unida's equity

Q.3 Unida Systems has 39 million shares outstanding trading for $10 per share. In addition, Unida has $86 million in outstanding debt. Suppose Unida's equity cost of capital is15%, its debt cost of capital is 8%, and the corporate tax rate is 35%.

a. What is Unida's unlevered cost of capital?

b. What is Unida's after-tax debt cost of capital?

c. What is Unida's weighted average cost of capital?

a. What is Unida's unlevered cost of capital?

Unida's unlevered cost of capital is_____________%.

(Round to one decimal place.)

b. What is Unida's after-tax debt cost of capital?

Unida's after-tax debt cost of capital is___________%.

(Round to one decimal place.)

c. What is Unida's weighted average cost of capital?

Unida's weighted average cost of capital is__________%.

(Round to one decimal place.)

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