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stranahan stranahan
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7 years ago
Red Rider Custom Built Bikes (RRB) Inc. has a new project that will require the company to borrow $1,000,000. RRB has made an agreement with three lenders for the needed financing. Valley Bank will give $500,000 and wants 9% interest on the loan. Mountain View Bank will give $300,000 and wants 11% interest on the loan.Desert Bank will give $200,000 and wants 12% interest on the loan. What is the weighted average cost of capital for this $1,000,000?
A) 10.00%
B) 10.67%
C) 10.20%
D) 9.67%
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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ExpertXExpertX
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stranahan Author
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7 years ago
Thanks Smiling Face with Open Mouth and Tightly-closed Eyes
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