United Airlines is considering adding a new hub operation in Lake Wobegon. The finance group at UAL has gathered the following data. They have hired you as a Finance consultant to help them determine their cost of capital.

Total Enterprise Value is $27 billion

Current stock market capitalization in $9 billion, shares are trading at $14

Debt was issued with a 4% coupon, and matures in 7 years

Bonds similar to Uniteds existing debt are current trading at 98.5

UAL pays a quarterly dividend of $.60, up from $.50 five years ago

The current risk free rate is 1.5%, UALs Beta is 1.5 and the market return is 7.5%

UAL pays a corporate tax rate of 21%

What is Uniteds cost of debt?

What is Uniteds cost of common equity?

What is Uniteds WACC?