Question 3: Ranbaxy Pharmacy Company wants to expand its business in UAE, to finance an expansion for $25,00,000. Investment bankers give the firm several options (Option) 510,00,000 loan at 5 $5,00,000 at 9 and $10,00,000 at 12%, or (Option 2) $15,00,000 at 9 and $10,00,000 at 4 or (Option 3) $20,00,000 at 124 and 55,00.000 at 8. The firm's executives must decide which option is cheaper, and as all options are using 100% debt, calculating the debt cost would be ideal in this scenario