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A question on about cost of capital

  • 18 February 2020
  • 0 replies

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Hi everyone, I have a question on calculating the cost of capital. I have an excerpt from Kaplan’s MBA Fundamentals in Accounting and Finance

See the attached screenshot below:


I would like to know how this book arrived at the numbers stated in the “proportions” column and the “cost” column.


For instance, in the long-term bank loan, how did the book arrived at 0,04 and 4.2% for the cost?

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