What is its weighted average cost of capital

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Problem: Assume that a not-for-profit company has $17 million of long-term tax-exempt debt with an interest rate of 3.5%. The organization has $2.8 million of unrestricted net assets, with an estimated cost of capital of 11%, and $12 million in an endowment with an estimated 2.5% return on assets (cost of capital).

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Question: What is its weighted average cost of capital?

Reference no: EM132418490

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