Question
Suppose you borrow $333000 when financing a tea shop which is valued at $470000. Assume that the unlevered cost equity of the coffee shop is
Suppose you borrow $333000 when financing a tea shop which is valued at $470000. Assume that the unlevered cost equity of the coffee shop is 14.5% and that the cost of debt is valued at 7.5%. What is the average cost of capital of the tea shop?
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
1118738101, 978-1118738108
