You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry assetbeta, you have already estimated an unlevered cost of capital for the firm of 9 %.

However, the new business will be 27 %

debtfinanced, and you anticipate its debt cost of capital will be 6 %

If its corporate tax rate is 36 %,

what is your estimate of its WACC?

Unida Systems has 41million shares outstanding trading for $ 8per share. Inaddition, Unida has $ 108million in outstanding debt. SupposeUnida's equity cost of capital is 16 %, its debt cost of capital is 7 %, and the corporate tax rate is 34 %. a. What isUnida's unlevered cost ofcapital? b. What isUnida's after-tax debt cost ofcapital? c. What isUnida's weighted average cost ofcapital?

a. What isUnida's unlevered cost ofcapital? Unida's unlevered cost of capital is nothing%. (Round to one decimalplace.)