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Unida Systems has 46 million shares outstanding trading for $10 per share. In addition, Unida has $107 million in outstanding debt. Suppose Unida's equity cost
Unida Systems has 46 million shares outstanding trading for $10 per share. In addition, Unida has $107 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 38%. 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 two decimal places.)
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