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A company has bank liabilities of $1,200,000 and equity of $800,000. The minimum rate of return required by investors is 14% and the bank interest
A company has bank liabilities of $1,200,000 and equity of $800,000. The minimum rate of return required by investors is 14% and the bank interest rate is 12%. If the ISR rate is 33%, the weighted average cost of capital is:
a. 10.42%
b. 5.60%
c. 7.20%
d. 23.76%
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