The firm has raised 8m by selling bonds at an average rate


BOAC's shareholders expect 15% rate of return and there is $15M in common stick and retained earnings. The firm has $5M in loans at an average rate of 7%. The firm has raised $8M by selling bonds at an average rate of 6%. What is the firm's cost of capital before taxes?

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Financial Management: The firm has raised 8m by selling bonds at an average rate
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