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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%, and its

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%, and its target capital structure calls for 60% debt financing and 40% equity (fund capital) financing. Its estimated cost of equity is 15.4%. What is Morningside's corporate cost of capital?

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