Your answer is incorrect. Splish Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,160,000 on March 1, HK$1,440,000 on June 1, and HK$2,520,000 on December 31. Splish Ltd. had outstanding all year a 8%, 5-year, HK$4,800,000 note payable and an 9%, 4-year, HK$4,200,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Capitalization rate %

Splish Ltd. is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were HK $2,160,000 on March 1, HK $1,440,000 on June 1, and HK $2,520,000 on December 31. Splish Ltd. had outstanding all year a 8\%, 5-year, HK\$4,800,000 note payable and an 9\%, 4-year, HK\$4,200,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, es. 7.58\%) Capitalization rate %