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You have just been hired as a consultant for a nonprofit hospital. In doing some research you calculate that their cost of capital is comprised
You have just been hired as a consultant for a nonprofit hospital. In doing some research you calculate that their cost of capital is comprised of 40% debt and 60% equity. Their before tax cost of debt (YTM) is 10%. You use various methods to estimate the cost of equity and come up with 12%. Given this information calculate the weighted average cost of capital (WACC)
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