Unida Systems has 44 million shares outstanding trading for $12 per share. In addition, Unida has $83 million in outstanding debt. Suppose Unida's equity cost of capital is 17%, its debt cost of capital is 7%, and the corporate tax rate is 32%. a. What is Unida's unlevered cost of capital? b. What is Unida's after-tax debt cost of capital? c. What

Question

Unida Systems has 44 million shares outstanding trading for

$12

per share. In addition, Unida has

$83

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

17%

, its debt cost of capital is

7%

, and the corporate tax rate is

32%

. 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.) c. What is Unida's weighted average cost of capital? Unida's weighted average cost of capital is %. (Round to two decimal places.)

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