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 %?