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Calculation Of Average Weighted Costs Of Capital When Assessing Company Business Activities

Table 1:

Assumed sources of capital Contribution to the total capital Alternative costs Tax rate After tax costs Average weighted contribution values
1 2 3 4 5 2×5=6
Debt obligations 16 8 18 26 4,16
Stocks 84 12 12 10.1
Average weighted costs of capital 14.26
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