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St. Vincent's Hospital has a target capital structure of 55 percent debt and the remainder in equity. Its cost of equity (fund capital) estimate is

St. Vincent's Hospital has a target capital structure of 55 percent debt and the remainder in equity. Its cost of equity (fund capital) estimate is 14.6 percent and its cost of tax-exempt debt estimate is 7 percent. What is the hospital's corporate cost of capital?

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