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Estimate the weighted average cost of capital

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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 estimated an unlevered cost of capital for the firm of 10%. ?However, the new business will be 22% debt? financed, and you anticipate its debt cost of capital will be 7%. If its corporate tax rate is 33% what is your estimate of its? WACC?

What is the equity cost of capital is %?

What is the weighted average cost of capial %?

Reference no: EM131894210

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