Cost of equity (fund capital)

St. David's Hospital in Austin, Texas has a target capital structure of 35 percent debt and 65 percent equity. Its cost of equity (fund capital) estimate is 13.5 percent and its cost of debt is 7 percent. If it has a 35% tax rate, what is the hospital's corporate cost of capital?

Get Top-Notch Quality Essays TODAY !

Ready to join our block community of business leaders for four days of virtual sessions on driving developer happiness and boosting productivity?

Place Order