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9. On March 1, 2016, XYZ, Inc. obtained a $35,000,000 5-year loan at 12% to help finance construction of a building. During the year the
9. On March 1, 2016, XYZ, Inc. obtained a $35,000,000 5-year loan at 12% to help finance construction of a building. During the year the company also had the following debt:
- $2,000,000 Note Payable at 8.5%
- $3,500,000 Note Payable at 7.8%
- Calculate the weighted-average interest rates that management should use for interest capitalization purposes.
- Show your calculation in detail.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
