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Hi Can you please show how to solve this question with formulas: You would like to estimate the weighted average cost of capital for a

Hi Can you please show how to solve this question with formulas:

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

25% debt financed, and you anticipate its debt cost of capital will be 6%. If its

corporate tax rate is 40%, what is your estimate of its WACC?

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