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An investment project is planned to be financed as follows: a bank loan for $235,000, the cost of which amounts to 20%; issuance of common

An investment project is planned to be financed as follows: a bank loan for $235,000, the cost of which amounts to 20%; issuance of common shares for $145,000 with a profit offered of 25%; and issuance of preferred shares for $450,000 with a profit offered of 30%. Determine the weighted average cost of capital.

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