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Management Studies

Based on the following information compute cost of capital

Assets 450000, Liabilities are 40% of total capital, Company tax rate is 35%, pre tax cost of debt is 12%.New equity capital (common stock) can be raised if investors yield is 18% .Retained earnings are expected to return 20% to statisfy corporate growth objectives .Common stock and Retained earnings are each half of the remaining capital structure.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91389131

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