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Suppose the electric car maker Nio's balance sheet looks like the following: Balance Sheet NIO Inc. on December 31st, 2121 Cash $153,412 Accounts payable $73,778
Suppose the electric car maker Nio's balance sheet looks like the following:
Balance Sheet NIO Inc. on December 31st, 2121
Cash | $153,412 | Accounts payable | $73,778 |
Accounts receivable | $249,272 | Long-term bond | $207,238 |
Intellectual properties | $442,968 | ||
Property & Equipment | $101,162 | Common stock | $665,798 |
Total Assets | $946,814 | Total Lib & Equity | $946,814 |
If Nio's management estimates that the market requires a 8% return on its common stock, the firm's bonds command a yield to maturity of 3%, and the firm faces a tax rate of 12%, then what is company's weighted average cost of capital?
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