Metlock Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.2 million on March 1, $0.9 million on June 1, and $3 million on December 31. Metlock Company borrowed $1.3 million on March 1 on a five-year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $1- million, five-year, 13% note payable and a $3.5-million, four-year, 17% note payable. Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs. (Round answer to 2 decimal places, e.g. 52.75%) Capitalization rate %

Metlock Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $1.2 million on March 1, $0.9 million on June 1, and $3 million on December 31. Metlock Company borrowed $1.3 million on March 1 on a five year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $1- million, five year, 13% note payable and a $3.5 million, four-year, 17% note payable. Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs. (Round answer to 2 decimal places, eg. 52.75%) Capitalization rate