Unida systems has 36 million shares outstanding trading for


Unida Systems has 36 million shares outstanding trading for $9 per share. In addition, Unida has $110 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?

a. What is Unida's unlevered cost of capital?

Unida's unlevered cost of capital is %. (Round to one decimal place.)

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Financial Management: Unida systems has 36 million shares outstanding trading for
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