Please answer this question showing the calculation steps. Unida Systems has 48 million shares outstanding trading...

Please answer this question showing the calculation steps.

Unida Systems has 48 million shares outstanding trading for $10 per share. In addition, Unida has

$113 million in outstanding debt. Suppose Unida's equity cost of capital is 16%, its debt cost of capital is

9% and the corporate tax rate is 38%.

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

b. What is Unida's after-tax debt cost of capital? ___________% (Round to one decimal place)

c. What is Unida's weighted average cost of capital?____________% (Round to one decimal place)

Expert Solution

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