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Pabloss store has two loans one for 125000 at 8 and the

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?

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Finance Basics: Pabloss store has two loans one for 125000 at 8 and the

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Finance Basics: Pabloss store has two loans one for 125000 at 8 and the

Reference No:- TGS02722092

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