Assuming you are the financial manager of a for-profit


Assuming you are the financial manager of a for-profit hospital, what is the hospital's cost of capital assuming that the hospital has the following capital structure on its Statement of Financial Position (SFP; also known as a Balance Sheet): Long-Term Debt: $300M; current Yield to Maturity (YtM) of 6.5%, selling at par. Preferred Stock: $200M; coupon yield of 10%, currently selling below face value at $9,975 for every $10,000 bond. Common Stock: $700M; par value of $5 per share; current price of $70 per share, dividend of $12 per share. Tax rate: 41.5%

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Financial Management: Assuming you are the financial manager of a for-profit
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