What should be the acceptable maximum cost of financing, Financial Accounting

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What should be the acceptable maximum cost of financing

Problem

Philip's company has $200,000 in share capital and $80,000 in retained earnings. The company's total debt is $120,000. During the current year, the company earned $50,000 in after-tax profit. What should be the acceptable maximum cost of financing for this company?

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Financial Accounting: What should be the acceptable maximum cost of financing

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