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Posted: June 15th, 2022
overhead slam tennis shoppes has a new project that will require the company
overhead slam tennis shoppes has a new project that will require the companyto 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.
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