Unida Systems has 44 million shares outstanding trading for $8 per share. In? addition, Unida...

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Finance

Unida Systems has

44

million shares outstanding trading for

$8

per share. In? addition, Unida has

$81

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

18%?,

its debt cost of capital is

7%?,

and the corporate tax rate is

39%.

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?

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