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Darrell Motorsports has a new project that will require the company to borrow $5,000,000. Darrell has made an agreement with three lenders for the needed

Darrell Motorsports has a new project that will require the company to borrow $5,000,000. Darrell has made an agreement with three lenders for the needed financing. Citizens' Bank will give $2,500,000 and wants 9% interest on the loan. Visitors' Bank will give $2,000,000 and wants 13% interest on the loan. Peoples' Bank will give $500,000 and wants 16% interest on the loan. What is the weighted average cost of capital for this $5,000,000?

10.45%

11.3%

11.67%

12.26%

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