11.2 WACC. Grey's Pharmaceuticals has a new project that will require funding of $13.9 million. The...
11.2
WACC.
Grey's Pharmaceuticals has a new project that will require funding of $13.9 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown:
|
Lender |
Amount |
Interest Rate |
||
|
Steven |
$4,936,263 |
13% |
||
|
Yang |
$4,037,363 |
12% |
||
|
Shepherd |
$3,230,851 |
9% |
||
|
Bailey |
$1,695,523 |
10% |
||
What is the weighted average cost of capital for the $13,900,000?
____% (Round to two decimal places)
Homework Answers
Answer :
Calculation of WACC
Below is the table showing Calculation of WACC
| Lender | Amount Lent | Interest Rate (a) | Weights (b) | Weighted Cost |
| (Amount Lent / Total Amount Lent) | (a*b) | |||
| Steven | 4936263 | 13 | 0.355126835 | 4.616648849 |
| Yang | 4037363 | 12 | 0.29045777 | 3.485493237 |
| Shephard | 3230851 | 9 | 0.232435324 | 2.091917914 |
| Bailey | 1695523 | 10 | 0.121980072 | 1.219800719 |
| Total amount Lent | 13900000 | WACC | 11.41386072 or 11.41% |
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11.2
WACC.
Grey's Pharmaceuticals has a new project that will require
funding of $13.9 million. The...
WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.9 million. The company...
WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.9 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon Lender Steven in order to copy its content into a spreadsheet. Amount Interest Rate $4,812,237 14% $3,915,777 11% $2,919,044 9% $1,252,942 10% Yang Shepherd Bailey What is the weighted average...
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Grey’s Pharmaceuticals has a new project that will require
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all-debt scenario. Grey’s has made an agreement with four lenders
for the needed financing. These lenders will advance the following
amounts and interest rates:
What is the weighted average cost of
capital for the $4,000,000?
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WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.9 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon Lender Steven in order to copy its content into a spreadsheet. Amount Interest Rate $4,812,237 14% $3,915,777 11% $2,919,044 9% $1,252,942 10% Yang Shepherd Bailey What is the weighted average...
WACC. Grey's Pharmaceuticals has a new project that will require funding of $14.3 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon Lender Steven Yang Shepherd Bailey in order to copy its content into a spreadsheet. Amount Interest Rate $5,098,011 13% $4,372, 110 11% $3,230,108 9% $1,599,771 10% What is the weighted...
Grey’s Pharmaceuticals has a new project that will require
funding of $4 million. The company has decided to pursue an
all-debt scenario. Grey’s has made an agreement with four lenders
for the needed financing. These lenders will advance the following
amounts and interest rates:
What is the weighted average cost of
capital for the $4,000,000?
Lender Interest Rate Amount $ 1,500,00 Stevens 11% Yang $1,200,000 9% Shepherd $1,000,000 7% Bailey $ 300,000 8%
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...
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