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Question 3 (15 points) Assume that a not-for-profit company has $10 million of long-term tax-exempt debt with an interest rate of 4.5%. The organization has

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Question 3 (15 points) Assume that a not-for-profit company has $10 million of long-term tax-exempt debt with an interest rate of 4.5%. The organization has $7 million of unrestricted net assets, with an estimated cost of capital of 6%, and S4 million of restricted net assets (in an endowment) with an estimated 7% return on assets (cost of capital). What is its weighted average cost of capital? In order for your answer to be graded correctly, Do not use any symbols (e.g. $) or comma. Use only numeric values. For example, if your answer is $123,456, then in the boxes below you should type 123456. Answer must contain only one decimal point. No adjustments will be made to your grade if you fail to follow these instructions

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