Question
WACC. Grey's Pharmaceuticals has a new project that will require funding of $13.3 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 $13.3 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 | $4,735,503 | 11% | ||
| Yang | $3,953,616 | 8% | ||
| Shepherd | $3,286,184 | 6% | ||
| Bailey | $1,324,697 | 7% | ||
What is the weighted average cost of capital for the $13,300,000?
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
