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Lincoln Corporation has $45M in common stock and retained earnings, and the stock holders expect a rate of return of 15% on their investment. The
Lincoln Corporation has $45M in common stock and retained earnings, and the stock holders expect a rate of return of 15% on their investment. The company has secured $20M from investment banks that expect to have a rate of return of 12%. The company has also raised $5M wing corporate bonds with a coupon rate. If the company is in 40% incremental tax rate. What is the after tax cost of capital O 13.5 O 9.75 O 12.13 O 14.2% O 10.85%
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