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Let's say the company's capital structure consists of 25% debt and the rest of it is equity.The cost of capital for equity is 0.15 and
Let's say the company's capital structure consists of 25% debt and the rest of it is equity.The cost of capital for equity is 0.15 and the cost of capital for bonds is 0.04.On the other hand, when the debt accounted for 50%, the capital cost for equity capital was 0.20.Calculating the cost of capital for the bond when the liability accounts for 50% of the total assets?
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