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What is the weighted average cost

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Overhead tennis shoppes has a new project that will require the company to borrow 8,700,00 overhead has made an agreement with three lenders for the needed financing. Citizens bank will lend 2,000,000 and wants 8% interest on the loan visitors' bank will lend 4,250,000 and wants 10% interest on the loan. People's bank will lend 2,450,000 and wants 11% interest on the loan. If all of these interest rates are after-tax, what is the weighted average cost of capital for this project.

a) 9.67%

b) 10.17%

c) 9.82%

d) 12.21%

Reference no: EM131044451

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