Find the weighted average cost of capital

Reference no: EM131926617

Question: Pablos's store has two loans, one for $125,000 at 8% and the other is $300,000 at 8.5%. His equity investor put in $500,000 and expects a 12% return. His tax rate is 35%.

What is his weighted average cost of debt?

What is his weighted average cost of capital?

Reference no: EM131926617

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