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Bora ltd has 300,000 of retained earnings available.The cost of equity is 13%.if the company exhauststhe retained earnings it can issue equity whose cost is

Bora ltd has 300,000 of retained earnings available.The cost of equity is 13%.if the company exhauststhe retained earnings it can issue equity whose cost is 14%The firm expects that oit can borrow upto 400,000 at 5.6%,beyond that,additional debt will have an after tax cost of 8.4%.Unlimited amount of funds can be raised by issuing preference stock at a current cost of 10.6%.Bora ltd capital structure is 40% debt,50% equity,10% preference.Calculate the marginal cost of capital of the various ranges of total financing.

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