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You would Whe to estimate the weighted average cost of capital for a new ailline business. Based on its industry asset beta, you have already

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You would Whe to estimate the weighted average cost of capital for a new ailline business. Based on its industry asset beta, you have already estimated an unlevered cost of capifal for the firm of 9%. However, the new business will be 27% debt finarced, and you anticipate ats dobt cost of capital wilf be 7% If its corporate tax rato is 39% whist is your estimate of its WACC? The equity cost of capital is Y. (Round to one decimal place)

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