Determine the cost of capital for the company

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Reference no: EM13563817

A new space age development corporation in wichita kansas has borrowed a sum of $4M from a friendly bank at an interest rate of 9%. the company has also borrowed another $1M from other sources at an interest rate of 8%. additionaly the owners have invested a sum of %5M in the businness with the intention of earning a 15% return on the invesment. determine the cost of capital for the company (WACC= weighted average cost of capital)

Reference no: EM13563817

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