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# Engineering Economics Corporation XYZ wants to invest in a project for which the need is 50.1 million.2 million will come from a bank loan at 5.98...

Engineering Economics

Corporation XYZ wants to invest in a project for which the need is 50.1 million. 6.2 million will come from a bank loan at 5.98 percent per year. 6.5 million will come from issuing bonds with a bond rate of 6.76. The rest will be financed with stock issue that will pay divididends of 3.83 dollars per share. The average stock price is 86.85. Compute the cost of capital for this project in percentage points if the tax rate is 35%

The answer in the back of the book states its 4.34%
but im not getting that number. I would greatly appreciate the help in showing me the steps

Q. Corporation XYZ wants to invest in a project for which the need is 50.1 million. 6.2 million will
come from a bank loan at 5.98 percent per year. 6.5 million will come from issuing bonds with a...

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