Question
WACC. Grey's Pharmaceuticals has a new project that will require funding of $6.0 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 $6.0 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 | $2,165,244 | 14% | ||
| Yang | $1,775,691 | 12% | ||
| Shepherd | $1,524,077 | 9% | ||
| Bailey | $534,988 | 10% | ||
What is the weighted average cost of capital for the $6,000,000?
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
