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QUESTION 10 Currently, United Airlines has no debt and their equity beta is 1.2. You know that the risk free rate is 3% and the

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QUESTION 10 Currently, United Airlines has no debt and their equity beta is 1.2. You know that the risk free rate is 3% and the market risk premium is 6.9%. The company CEO wants to change its capital structure to a debt to equity ratio of 1:5. Under the new capital structure, United Airlines' projected cost of debt is 4%. What will be their cost of equity under the new capital structure? ? (Answer in %. Ex for .6789 put 67.89%)

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