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Richmond Clinic has obtained the following estimates for its costs of debt and equity at various capital structures

Aug 5th, 2015

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Percent Debt Percent Equity After Tax Cost of Debt Cost Of Equity WACC 0% 100% 0 18% 18.00% 20% 80% 5.40% 16% 13.88% 40% 60% 6.60% 17% 12.84% 60% 40% 13% 28% 19.00% 80% 20% 10% 19% 11.80% Optimum Capital Structure based on WACC would be the 5th one.since WACC is is lowest in this case

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Aug 5th, 2015

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