Question: United Airlines is considering adding a new hub operation on Mars. The finance group at UAL has gathered the following data. They have hired you
United Airlines is considering adding a new hub operation on Mars. The finance group at UAL has gathered the following data. They have hired you as a Finance consultant to help them determine their cost of capital.
Total Enterprise Value is $ billion
Current stock market capitalization in $ billion, shares are trading at $
Outstanding Debt has a yield to maturity
UAL pays a quarterly dividend of $ up from $ four years ago
The current risk free rate is UAL's Beta is the market premium is
UAL pays a corporate tax rate of
What debt and equity weights will United use to calculate WACC?
What is United's cost of debt?
What is United's cost of common equity?
What is United's WACC?
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