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2. Assume that a firm has real estate debt with an insurance company of $80,000 at a 10% interest rate. In addition, it has short-term

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2. Assume that a firm has real estate debt with an insurance company of $80,000 at a 10% interest rate. In addition, it has short-term bank loans that over the past few years have averaged $40,000 per year at an interest rate of 5%. What is the weighted average cost of borrowed capital

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