Alphabet (parent of Google) is thinking of launching a new venture in air transportation sector. Please help them calculate a cost of capital for this new venture.

Market data: Risk-free interest rate: 2 percent Best estimate of market risk premium: 6 percent Federal corporate tax rate: 21 percent Alphabet data: Estimated equity beta = 0.91 Equity market cap = $1500 B Cash on hand: $100 B No debt. Credit rating would be AAA American Airlines dat: Equity beta: 1.9 Equity market cap: $15 B Net debt value: $35 B