Question
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
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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Applied Sport Management Skills
Authors: Robert N. Lussier, David C. Kimball
2nd Edition
1450434150, 978-1450434157
