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In a relatively recent set of financial statements, Air Canadas external financing consisted of: $1,129 million in (6.5% interest) bank loans; $3,959 million in (5.25%

In a relatively recent set of financial statements, Air Canadas external financing consisted of: $1,129 million in (6.5% interest) bank loans; $3,959 million in (5.25% coupon, 6% YTM) bonds; and $1,397 million in share capital. Their stock is selling for about $18/share. Imagine their most recent dividend was $1.40/share (annualized), and their annual growth rate is 6.5% (based on the most recent 25 years of data). Calculate Air Canadas WACC to determine their RRR

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