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Suppose the total dollar amount of a for profit hosptal is 0.75 capital and 0.25 debt. Assume the stockholders are receiving 10% in return while

Suppose the total dollar amount of a for profit hosptal is 0.75 capital and 0.25 debt. Assume the stockholders are receiving 10% in return while the creditors are getting 8%. a. What is the corporate cost of capital of this hospital? b. What would be the corporate cost of capital at 40% tax?

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