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Part 1

Unida Systems has

44

million shares outstanding trading for

$12

per share. In addition, Unida has

$119

million in outstanding debt. Suppose Unida's equity cost of capital is

15%,

its debt cost of capital is

8%,

and the corporate tax rate is

37%.

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?

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Part 1

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

Unida's unlevered cost of capital is

enter your response here%.

(Round to two decimal places.)

Part 2

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

Unida's after-tax debt cost of capital is

enter your response here%.

(Round to two decimal places.)

Part 3

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

Unida's weighted average cost of capital is

enter your response here%