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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Chapter 11, Question 2

Transcribed Image Text:WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.3 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
$4,563,472
$3,590,785
13%
Yang
12%
Shepherd
$3,127,951
9%
Bailey
$1,017,792
10%
What is the weighted average cost of capital for the $12,300,000?
What is the weighted average cost of capital for the $12,300,000?
% (Round to two decimal places.)
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