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 28% debt​ financed, and you anticipate its debt cost of capital will be 5%. If its corporate tax rate is 39%​, what is your estimate of its​ WACC?

The equity cost of capital is ——-%. (Round to one decimal​ place.

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