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Safe Airline has a capital structure that consists of 30% debt and 70% equity. The companys cost of debt is 7%. The company has a
Safe Airline has a capital structure that consists of 30% debt and 70% equity. The companys cost of debt is 7%. The company has a beta of 1.2. The risk free rate equals 4.5% and the expected return on the market portfolio is 15%. Assuming no taxes, what is Safe Airlines weighted average cost of capital (Ka)?
7% | ||
19.22% | ||
14.07% | ||
17.12% |
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