Grey€™s Pharmaceuticals has a new project that will require funding of $4 million. The company has decided to pursue an all-debt scenario. Grey€™s has made an agreement with four lenders for the needed financing. These lenders will advance the following amounts and interest rates:

What is the weighted average cost of capital for the$4,000,000?

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Lender Stevens Yang Shepherd Bailey Amount $1,500,00 $1,200,000 $1,000,000 $ 300,000 Interest Rate 11% 9% 7% 8%