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.)