Waterway Industries is constructing a building. Construction began on January 1 and was completed on...
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Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6350000 on March 1, $5300000 on June 1, and $8150000 on December 31. Waterway Industries borrowed $3190000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6450000 note payable and an 12%, 4-year, $12350000 note payable. What is the weighted-average interest rate used for interest capitalization purposes?
11.86%
11.51%
12.00%
11.66%
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