You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry asset$$ beta, you have already estimated an unlevered cost of capital for the firm of $10\%.$However$,$ the new business will be $27\%$ debt$$ financed, and you anticipate its debt cost of capital will be $7\%.$ If its corporate tax rate is $40\%,$ what is your estimate of its$$ WACC?

Question content area bottom

Part $1$

The equity cost of capital is

$$

$\%.($Round to one decimal$$ place.$)$

Part $2$

The weighted average cost of capital is

$$

$\%($Round to one decimal$$ place$)$