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1. Question 4 on page 189 An investor wants to start a small business with a total capital of $10 million. This investor is able

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1. Question 4 on page 189 An investor wants to start a small business with a total capital of $10 million. This investor is able to raise an equity (stock) capital of $6 million at an estimated cost of 10%. The remaining balance of $4 million is obtained as a debt (bond) at a 5% rate. Find the cost of capital (average cost of total capital)

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