What is the average cost of capital for the organization

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All of general's hospital's dept is at an interest rate of 7.5% on its dept. It is the 35% tax bracket. 30% of its funding is dept. 70% of its funding is equity, which costs 12%. What is the average cost of capital for the organization?

9.86%
7.5%
9.75%
12%

 

Reference no: EM13295954

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