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 23 % debt financed, and you anticipate its debt cost of capital will be 5%. If its corporate tax rate is 30 %. what is your estimate of its WACC?

The Equity cost of capital is %

The weighted average cost of capital is: %