Morningside Nursing Home a not-for-prot corporation isestimating its corporate c

Morningside Nursing Home a not-for-prot corporation isestimating its corporate cost of capital. Its tax-exempt debtcurrently requires an interest rate of 6.2 percent and its targetcapital structure calls for 60 percent debt nancing and 40 percentequity (fund capital) nancing.The estimated costs of equity forselected investor-owned healthcare companies are given below:GlaxoSmith Kline 15.0%Long- Term Care Corporation 16.4HEALTHSOUTH 17.4Humana 18.8a. What is the best estimate for Morningsides cost of equity?