Firm''s composite cost of capita

Firm''s composite cost of capita

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a firm must raise $10 million dollars in funding for a capital investment project. $2 million will be raised by issuing debt with an interest rate of 10% while the remainder will be raised by issuing stocks that will yield a return of 12%. The firm's marginal tax rate is 30%. What is the firm's composite cost of capita?

Reference no: EM13174712

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