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4. Pablos's store has two loans, one for $125,000 at 8% and the other is $300,000 at 8.5%. His equity investor put in $500,000 and
4. Pablos's store has two loans, one for $125,000 at 8% and the other is $300,000 at 8.5%. His equity investor put in $500,000 and expects a 12% return. His tax rate is 35%.
What is his weighted average cost of debt?
What is his weighted average cost of capital?
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