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You work in the capital budgeting project of your firm and you have been asked to convert a real cost of capital of 1 5

You work in the capital budgeting project of your firm and you have been asked to convert a real cost of capital of 15% into a nominal cost of capital. The expected rate of inflation is 4%. What is the nominal cost of capital? Express your cost of capital answer in decimal format and accurate to 4 decimal places (e.g.,0.023450 should be entered as 0.0235).

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