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Assume the following conditions of a clinic: - Target weights of 30% debt and 70 % equity - Tax rate: 30.0% - Cost of debt:

Assume the following conditions of a clinic: - Target weights of 30% debt and 70 % equity - Tax rate: 30.0% - Cost of debt: 9.0% - Risk premium:5.0% 1. What is the cost of equity? 2. What is the corporate cost of capital (CCC)? 3. Determine the project risk.

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