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Calculate the weighted-average interest rates

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Question - On March 1, 2016, XYZ, Inc. obtained a $35,000,000 5-year loan at 12% to help finance construction of a building. During the year the company also had the following debt:

$2,000,000 Note Payable at 8.5%

$3,500,000 Note Payable at 7.8%

Calculate the weighted-average interest rates that management should use for interest capitalization purposes. Show your calculation in detail.

Reference no: EM131703944

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