12-26. Unida Systems has 32 million shares outstanding trading for $9 per share. In addition, Unida has $85 million in o
Posted: Sat Feb 26, 2022 9:06 am
12-26. Unida Systems has 32 million shares outstanding trading for $9 per share. In addition, Unida has $85 million in outstanding debt. Suppose Unida's equity cost of capital is 13%, its debt cost of capital is 9%, 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?