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Unida Systems has 38 million shares outstanding trading for $12 per share. In addition, Unida has $94 million in outstanding debt. Suppose Unida's equity cost

Unida Systems has 38 million shares outstanding trading for $12 per share. In addition, Unida has $94

million in outstanding debt. Suppose Unida's equity cost of capital is 14%, its debt cost of capital is 9%,

and the corporate tax rate is 39%.

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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