Capital structure consists-what is the cost of capital

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Benskin Corporation’s capital structure consists of $600,000 of assets and $325,000 of liabilities. The average interest rate on Benskin’s debt is 10% and the stockholders desire a 15% return. What is Benskin’s cost of capital? If the average interest rate on debt is 12 percent, what is the cost of capital?

Reference no: EM131203408

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