Document1 - Word Search Layout References Mailings Review View Help BUS-522 Fundamentals of Healthcare Finance Homework Week 5 Susan G. Midgett, BSN, RN, CNOR 8.5 Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. Its tax-exempt debt currently requires an interest rate of 6.2 percent, and its target capital structure calls for 60 percent debt financing and 40 percent equity (fund capital) financing. Its estimated cost of equity is 15.4 percent. What is Morningside's corporate cost of capital