Question
WACC. Grey's Pharmaceuticals has a new project that will require funding of $2.8 million. The company has decided to pursue an all-debt scenario. Grey's has
WACC.
Grey's Pharmaceuticals has a new project that will require funding of $2.8 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown:
| Lender | Amount | Interest Rate | ||
| Steven | $1,052,783 | 16% | ||
| Yang | $850,335 | 14% | ||
| Shepherd | $716,302 | 11% | ||
| Bailey | $180,580 | 12% | ||
What is the weighted average cost of capital for the $2,800,000?
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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
