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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 25% debt? financed, and you anticipate its debt cost of capital will be 6%. If its corporate tax rate is 37%?, what is your estimate of its? WACC?

The equity cost of capital is ?%. ? (Round to one decimal? place.)

The weighted average cost of capital is ?%. ?(Round to one decimal? place.)

Reference no: EM132651296

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