Thirty-five percent of R.B.H. Bicycle Corp.s total capital is debt, 45% is from the issuance of stock,

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Thirty-five percent of R.B.H. Bicycle Corp.’s total capital is debt, 45% is from the issuance of stock, and 20% is equity from retained earnings. The company has determined that the cost of its debt capital is 8% and the cost of its equity capital is 18% from stock and 15% from retained earnings.
Compute R.B.H’s average cost of capital.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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