8. You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry ass

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8. You would like to estimate the weighted average cost of capital for a new airline business. Based on its industry ass

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8 You Would Like To Estimate The Weighted Average Cost Of Capital For A New Airline Business Based On Its Industry Ass 1
8 You Would Like To Estimate The Weighted Average Cost Of Capital For A New Airline Business Based On Its Industry Ass 1 (16.71 KiB) Viewed 11 times
8. 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 24% 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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