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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.) b. What is Unida's after-tax debt cost of capital? Unida's after-tax debt cost of capital is \%. (Round to two decimal places.)
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