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A corporation has a total capital of $10,000,000 by issuing shares of stock worth $6,000,000, and by floating bonds worth $4,000,000. If the cost of
A corporation has a total capital of $10,000,000 by issuing shares of stock worth $6,000,000, and by floating bonds worth $4,000,000. If the cost of debt is 8% and cost of equity is 14%, what is the weighted average cost of capital in the absence of corporate tax.
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