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What is risk adjusted cost of capital for each type of loan

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Question 1: Altra Bank's weighted average cost of capital is 10%. Altra considers making car loans of average risk, making home loans below average risk, and making business loans above average risk. If Altra adjusts for risk by adding or subtracting one percentage point. What is the risk adjusted cost of capital for each type of loan?

Home Loan: 9%

Car Loan: 10%

Business Loan: 11%

Reference no: EM132534998

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