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Unida Systems has 36 million shares outstanding trading for $9 per share. In addition, Unida has $110 million in outstanding debt. Suppose Unida's equity cost
Unida Systems has 36 million shares outstanding trading for $9 per share. In addition, Unida has $110 million in outstanding debt. Suppose Unida's equity cost of capital is 18%, its debt cost of capital is
9%, 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.)
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