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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
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 However the new business will be debt financed, and you anticipate its debt cost of capital will be If its corporate tax rate is what is your estimate of its WACC?
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