Assume a not-for-profit company has $10 million of longterm tax-exempt debt with an interest rate of 4.

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Assume a not-for-profit company has $10 million of longterm tax-exempt debt with an interest rate of 4. 5%. The organization has $7 million of net assets without donor restrictions, with an estimated cost of capital of 6%, and $4 million of net assets with donor restrictions (in an endowment), with an estimated 7% return on assets (cost of capital). What is its weighted average cost of capital?

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Accounting Fundamentals For Health Care Management

ISBN: 9781284265200

4th Edition

Authors: Steven A. Finkler, David M. Ward, Thad Calabrese

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