You acquired the following capitals for your own business. $100,000 comes from your family, which is interest free. $200,000 comes from your best friend. He charges you 4% APR for the loan. $300,000 comes from a bank as a 10 year note. The bank charges you 7.5% APR for the loan. Assume there is no tax, what is your WACC? (Please round up your answers to two decimals and write in percentage points. e.g. If your answer is 8.7896%, type 8.79 without the percentage sign)
You acquired the following capitals for your own business. $100,000 comes from your family, which is interest free. $200,000 comes from your best friend. He charges you 4% APR for the loan. $300,000 comes from a bank as a 10 year note. The bank charges you 7.5% APR for the loan. Assume there is no tax, what is your WACC? (Please round up your answers to two decimals and write in percentage points. e.g. If your answer is 8.7896%, type 8.79 without the percentage sign)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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You acquired the following capitals for your own business. $100,000 comes from your family, which is interest free. $200,000 comes from your best friend. He charges you 4% APR for the loan. $300,000 comes from a bank as a 10 year note. The bank charges you 7.5% APR for the loan. Assume there is no tax, what is your WACC? (Please round up your answers to two decimals and write in percentage points. e.g. If your answer is 8.7896%, type 8.79 without the percentage sign)
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