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Assume the following facts about a firm's financing in the next year. Calculate the weighted cost of the capital of this project: Proportion of Capital
Assume the following facts about a firm's financing in the next year. Calculate the weighted cost of the capital of this project:
Proportion of Capital Projected funded by debt= 45%
Proportion of Capital Projects Funded by equity= 55%
Return Received by Bondholders= 0.08
Return Received by Stockholders= 0.15
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