Unida Systems has

46

million shares outstanding trading for

$10

per share. In addition, Unida has

$112

million in outstanding debt. Suppose Unida's equity cost of capital is

15%,

its debt cost of capital is

8%,

and the corporate tax rate is

34%.

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?