Question: WACC. Grey's Pharmaceuticals has a new Project that will require funding of 7.5$ million. Thecompany has decided to pursue an all-debtscenario. Grey's has made agreements

WACC. Grey's Pharmaceuticals has a new Project that will require funding of 7.5$ million. Thecompany has decided to pursue an all-debtscenario. 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 $2,827,672 13%

Yang $2,273,813 11%

Shepherd $1,786,144 8%

Bailey $612,371 9%

What is the weighted average cost of capital for the $7,500,000?

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