What is the nominal cost of capital
Problem
You work in the capital budgeting project of your firm and you have been asked to convert a real cost of capital of 13% into a nominal cost of capital. The expected rate of inflation is 3%. What is the nominal cost of capital?
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You work in the capital budgeting project of your firm and you have been asked to convert a real cost of capital of 13%. What is the nominal cost of capital?
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