Unida systems has 35 million shares outstanding trading for


Unida Systems has 35 million shares outstanding trading for $8 per share. In? addition, Unida has $115 million in outstanding debt. Suppose? Unida's equity cost of capital is 18%?, its debt cost of capital is 9%?, and the corporate tax rate is 35%.

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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Finance Basics: Unida systems has 35 million shares outstanding trading for
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