Question
Need in next 15 minutes if possible!! Please help!!! You would like to estimate the weighted average cost of capital for a new airline business.
Need in next 15 minutes if possible!! Please help!!!
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 10%. However, the new business will be 21% debtfinanced, and you anticipate its debt cost of capital will be 5%. If its corporate tax rate is 33%, what is your estimate of its WACC?
1.The equity cost of capital is %? (Round to one decimal place)
2.The weighted average cost of capital is %? (Round to one decimal place)
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