FIN 515 –
January 4th, 2018
Unidea systems has 45 million shares outstanding trading for $12 oer share. In addition , Unida has $92 million in outstanding debt. Suppose Unida’s equity cost of capital is 17%, its debt cost of capital is 9%, and the corporate tax rate is 30%a. what is Unidas 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?