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(CHAPTER 14) Zoom Airlines would like to buy a new fleet of airplanes, and this new project which will be as risky as the company's
(CHAPTER 14) Zoom Airlines would like to buy a new fleet of airplanes, and this new project which will be as risky as the company's current projects. For this new project, the company plans to raise money by selling new common stock shares and new debt, with the debt-to-equity ratio of 0.69. The annual costs of common stock and debt equal 12% and 4%, respectively. Zoom Airlines falls into 26% corporate income tax bracket. Calculate Zoom Airlines' average annual cost of running its airline business, also known as the Weighted Average Cost of Capital. Your answer should be in %, not in decimals: e.g., 10.23 rather than 0.1023. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10.23. DO NOT use "95" in your
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