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Your company is completely financed by a loan and a bond. The loan is for $400,000 and has an interest rate of 8%. The bond

Your company is completely financed by a loan and a bond. The loan is for $400,000 and has an interest rate of 8%. The bond is for $300,000 and has an interest rate of 7%. 


What is the cost of capital  for your company?

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