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What is the weighted average cost of capital

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Acme Supply Co. has a new project that will require the company to borrow $3,000,000. Acme has made an agreement with three lenders for the needed financing. First National Bank will give $1,500,000 and wants 10% interest on the loan. Lockup Bank will give $1,000,000 and wants 12% interest on the loan. Southern National Bank will give $500,000 and wants 13% interest on the loan. What is the weighted average cost of capital for this $3,000,000??

  • ?12.16%
  • ?10.55%
  • ?11.66%
  • ?11.17%

Reference no: EM131693270

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