WACC. Grey's Pharmaceuticals has a new project that will require funding of $7.3 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon D in order to copy its content into a spreadsheet. Lender Amount Interest Rate Steven $2,555,146 12% Yang $2,095,642 11% Shepherd $1,778,883 8% Bailey $870,329 9% What is the weighted average cost of capital for the $7,300,000? % (Round to two decimal places.)
WACC. Grey's Pharmaceuticals has a new project that will require funding of $7.3 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon D in order to copy its content into a spreadsheet. Lender Amount Interest Rate Steven $2,555,146 12% Yang $2,095,642 11% Shepherd $1,778,883 8% Bailey $870,329 9% What is the weighted average cost of capital for the $7,300,000? % (Round to two decimal places.)
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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