Question
Unida Systems has 33 million shares outstanding trading for $11 per share. In addition , Unida has $120 million in outstanding debt. SUppose Unida's equity
Unida Systems has 33 million shares outstanding trading for $11 per share. In addition , Unida has $120 million in outstanding debt. SUppose Unida's equity cost of capital is 16%, its debt cost of capital is 9%, and the corporate tax rate is 35%.
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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