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Score: 0 of 1 pt 2 of 8 (2 complete) HW Score: 25%, 2 of 8 pts P11-2 (similar to) Question Help WACC. Grey's Pharmaceuticals has a new project that will require funding of $3.8 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: Click on the Icon in order to copy its content into a spreadsheet. Lender Amount interest Rate Steven $1,344,581 15% Yang $1,140,476 13% Shepherd $829,112 11% Balley $485,831 12% What is the weighted average cost of capital for the $3,800,000? What is the weighted average cost of capital for the $3,800,000? % (Round to two decimal places) Question Help 1-2 (similar to) CC. Gre View an Example eements ck on the ender teven ang -hepherd ailey Question Help WACC. Grey's Pharmaceuticals has a new project that will require funding of $16.3 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 at the interest rates shown: hat is the at is the % (Rour Lender Amount Interest Rate Steven $5,900,000 17% Yang $4,700,000 15% Shepherd $3,500,000 12% Bailey $2,200,000 13% What is the weighted average cost of capital for the $16,300,000? The weighted average cost of capital can be found by multiplying the percentage of each borrowing by the interest rate for that component and then summing the parts The total amount of capital financed is $16,300,000 ($5,900,000+ $4,700,000 + $3,500,000 $2,200,000) the sum of the individual loans. The weighted average cost of capital is computed as follows: $5,900,000 $4.700,000 $3,500,000 $2,200,000 WACC * *0.13-0.1481 - 14.81% AR X0.15 0.12+ ** *0.17 Question is complete Close nter your All parts showing Con All parts showing Question View an Example + + Question Help WACC. Grey's Pharmaceuticals has a new project that will require funding of $16.3 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 at the interest rates shown: Interest Rate Lender Steven Yang Shepherd Bailey Amount $5,900,000 $4,700,000 $3,500,000 $2,200,000 17% 15% 12% 13% de Sur What is the weighted average cost of capital for the $16,300,000? The total amount of capital financed is $16,300,000 ($5,900,000+ $4,700,000 + $3,500,000 $2,200,000), the sum of the individual loans The weighted average cost of capital is computed as follows: $5,900,000 $4.700,000 $3,500,000 WACC X0.17+ x0.12 x 0.15+ $16,300,000 $16,300,000 $16,300,000 Thus, the welghted average cost of capital for the $16,300,000 is 14.81%. $2,200,000 x0.13 = 0.1481 14.81% $16,300,000