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General Health Services has a target capital structure of 30 percent debt and 70 percent equity. its cost of debt estimated is 10 percent and

General Health Services has a target capital structure of 30 percent debt and 70 percent equity. its cost of debt estimated is 10 percent and its cost of equity estimate is 16 percent it pays federal, state, and local taxes at a 40 percent marginal rate.

What is the firms corporate cost of capital?

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