Unida Systems has

36

million shares outstanding trading for

$10

per share. In addition, Unida has

$117

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

12%,

its debt cost of capital is

9%,

and the corporate tax rate is

32%.

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?