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You are researching Air Canada and are specifically trying to find the company's WACC . Air Canada stock returns have a correlation with market returns

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You are researching Air Canada and are specifically trying to find the company's WACC . Air Canada stock returns have a correlation with market returns of OSS and a standard deviation of 45/ 6 . The shares are currently priced at $65 each and there are 37 min of them outstanding The firm also has 15 000 bonds outstanding . The bands have a market price of SI , 100 each and a YTM of 4 .5% Assume that Air Canada has a marginal tax rate of 30 % The market portfolio has an expected return of 7 / and a standard deviation of returns of 25 % The risk - free rate is 1.5 % ( a ) What are the weights of debt and equity in the Air Canada's capital structure ? ( 3 points

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