FIN 515-You would like to estimate the weighted average

by | Mar 18, 2020 | Uncategorized

  

You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry asset? beta, you have already estimated an unlevered cost of capital for the firm of 9%. However, the new business will be 29% debt? financed, and you anticipate its debt cost of capital will be 7%.

If its corporate tax rate is 38%?, what is your estimate of its? WACC?

?

The equity cost of capital is what %?(Round to one decimal? place.)

  

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