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Assume the following capital structure and cost of capital for A Company. Compute the Weight Average Cost of Capital considering all four sources of funds.
- Assume the following capital structure and cost of capital for A Company. Compute the Weight Average Cost of Capital considering all four sources of funds.
|
| Cost (%) | |
| Mortgage Bonds ($1,000 par) | $20,000,000 | 5.14 |
| Preferred Stock ($100 par) | 5,000,000 | 13.40 |
| Common Stock ($40 par) | 20,000,000 | 17.11 |
| Retained Earnings | 5,000,000 | 16.00 |
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
5th Edition
0324305508, 9780324305500
