What is risk weighted average cost of capital

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Reference no: EM131878304

Risk, Inc. has $50 million of outstanding equity with a required return of 18%. They also have $15 million face amount of 8% coupon bonds outstanding with a yield to maturity of 9.5% and 6 years until maturity. Assuming a tax rate of 40%, what is Risk’s weighted average cost of capital?

Reference no: EM131878304

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