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Seeking help on finding the cost of capital for this problem. You would like to estimate the weighted average east 0'! capital for a new

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Seeking help on finding the cost of capital for this problem.

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You would like to estimate the weighted average east 0'! capital for a new airline business. Based on its industry asset betaI you have already estimated an unlevered cost of capital for the rm of 10%. However. the new business will be 26% debt nanced, and you anticipate its debt cost of capital will be 6%. If its corporate tax rate is 33%. what is your estimate of its WAGS? The equity cost of capital is Es. (Round to one decimal place.)

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