You would like to estimate the weighted average cost of


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 9%.

?However, the new business will be 29% debt? financed, and you anticipate its debt cost of capital will be 6%.

If its corporate tax rate is 32%?, what is your estimate of its? WACC?

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Financial Management: You would like to estimate the weighted average cost of
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