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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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