7. Assume a not-for-profit company has $10 million of long-term tax-exempt debt with an interest...
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7. Assume a not-for-profit company has $10 million of long-term tax-exempt debt with an interest rate of 4.5%. The organization has $7 million of net assets without donor restrictions, with an estimated cost of capital of 6%, and $4 million of net assets with donor restrictions (in an endowment), with an estimated 7% return on assets (cost of capital). What is its weighted average cost of capital
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