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7 . Assume a not for - profit company has $10 million of long-term tax exempt debt with an interest rate of 4 5 /

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7 . Assume a not for - profit company has $10 million of long-term tax exempt debt with an interest rate of 4 5 / . The organization has $7 million of unrestricted net assets , with an estimated cost of capital of 6/ and $4 million of restricted net assets ( 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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