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What is the weighted average cost of capital

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Reference no: EM133014528

Question - Suppose that a company has total financing where 10% comes from bonds, 10% from a loan, and 80% from shareholders equity. The bonds pay on average a 10% interest rate, the loan has a 10% interest rate, and shareholders require a 10% return. What is the weighted average cost of capital (WACC) equal to?

Reference no: EM133014528

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