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St. Vincent's Hospital has a target capital structure of 40 percent debt and 60 percent equity. Its cost of equity (fund capital) estimate is 12

St. Vincent's Hospital has a target capital structure of 40 percent debt and 60 percent equity. Its cost of equity (fund capital) estimate is 12 percent and its cost of tax-exempt debt estimate is 8 percent. What is the hospital's corporate cost of capital?

Group of answer choices

9.6%

10.4%

12.0%

10.0%

12.4%

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