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Teal Mountain Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1,$1.2

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Teal Mountain Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1,$1.2 million on June 1 , and $3 miltion on December 31. Teal Mountain Company borrowed $1 million on March 1 on a five-year, 13% note to help finance the building construction, In addition, the company had outstanding all year a $1-million, five-year, 14% note payable and a $3,4-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 ploces, es. 52.75%.) Capitalization rate %

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