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Dakota Drilling Inc. (DD) has a new project that will require the company to borrow $5,000,000. MM has made an agreement with thre for the

Dakota Drilling Inc. (DD) has a new project that will require the company to borrow $5,000,000. MM has made an agreement with thre for the needed financing. First National Bank will give $1,000,000 and wants 696 interest on the loan. Texas Bank will give $3,000,000 a 7% interest on the loan. Chase Bank will give $1,000,000 and wants 8% interest on the loan. What is the weighted average cost of capit $5,000,000? a. 7.00% b. 8.00.0096 c. 10.6796 d. 10.20%

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