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7 Assume that 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
7 | Assume that 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 estimatd 7% return on assets (cost of capital). What is its | ||||||||
weighted average cost of capital? |
Please find the amounts below.
a.Long term debt amount = | ||
b.Long term debt interest rate = | ||
c.Restricted net assets = | ||
d.Est return on assets = | ||
e.Unrtestricted net assets = | ||
f.Unrestricted cost of capital = |
Please final the amounts and final Answer Below : | ||||||
Long term debt | $0 | X | 0% | = | $0 | |
Restricted asserts | $0 | X | 0% | = | $0 | |
Unrestricted assets | $0 | X | 0% | = | $0 | |
Total Capital | $0 | Total Cost | $0 | |||
Total Cost | $0 | = | Final Answer | |||
Total Capital | $0 |
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