Question: Given loan-to-value ratio (LTV) = 80%; mortgage interest rate = 10%, deposit interest rate = 6%, then Calculate Cost of capital =?

Given loan-to-value ratio (LTV) = 80%; mortgage interest rate = 10%, deposit interest rate = 6%, then Calculate 
Cost of capital =?

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To calculate the cost of capital we need to take into account both the interest rate on the mortgage ... View full answer

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