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Redlands, Inc. presents the following liabilities and shareholders' equity from its December 31, 2014 balance sheet (in thousands): Required: Compute the cost of debt and

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Redlands, Inc. presents the following liabilities and shareholders' equity from its December 31, 2014 balance sheet (in thousands): Required: Compute the cost of debt and equity capital, as well as the overall weighted average cost of capital (assume a 40% income tax rate; treasury bills earn 2% interest; and the risk premium for Redlands' stock is 7%)

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