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Unida Systems has 45 million shares outstanding trading for $11 per share. In addition, Unida has $113 million in outstanding debt. Suppose Unidas equity cost
Unida Systems has 45 million shares outstanding trading for $11 per share. In addition, Unida has $113 million in outstanding debt. Suppose Unidas equity cost of capital is 16%, its debt cost of capital is 7%, and the corporate tax rate is 36%. What is Unidas unlevered cost of capital? What is Unidas weighted average cost of capital? a. 12.1% and 11.4% b. 10% and 13% c. 5% and 30% d. None of the above..
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