NARRBEGIN: Never-Crash Airlines Never-Crash Airline

question 90

Multiple Choice

NARRBEGIN: Never-crash Airlines
Never-crash Airline
Never-crash Airline has a capital structure that consists of 30% debt and 70% equity. The company’s cost of debt is 7%. The company has a beta of 1.9. The risk free rate equals 4.5% and the expected return on the market portfolio is 15%.
NARREND

-Assuming no taxes,what is Never-crash Airline's WACC?

• A) 7%
• B) 19.22%
• C) 24.45%
• D) 17.12%

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