Ics plans to expand their operations as stated in problem 5, Ask an Expert

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ICS plans to expand their operations as stated in Problem 5 - and are considering taking the loan - however, they have a few investors that are interested in lending money for this venture.

They need a total of $775,000, and if they lend the money today, ICS will repay it, with interest, at the end of the year.

Company A agrees to lend $300,000 and they require 5% interest, Company B will lend $200,000 at 6% interest, and Company C will loan the balance but they won't settle for less than 10% interest.

What is the weighted average cost of this capital (WACC)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92763689

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