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Unida Systems has 32 million shares outstanding trading for $12 per share. In addition, Unida has $98 million in outstanding debt. Suppose Unida's equity
Unida Systems has 32 million shares outstanding trading for $12 per share. In addition, Unida has $98 million in outstanding debt. Suppose Unida's equity cost of capital is 17%, its debt cost of capital is 7%, and the corporate tax rate is 35%. b. What is Unida's after-tax debt cost of capital? a. What is Unida's unlevered 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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