Do these different sources of capital have different costs

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Reference no: EM131913408

1. Discuss the types of sources a company can use to raise capital. Do these different sources of capital have different costs?

Why or why not?

2. Calculate the weighted average cost of capital based on the follow (WACC)

target debt / equity ratio = 0.65.

cost of equity = 16 %

cost of debt = 9%

tax rate = 32.

Reference no: EM131913408

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