A company wishes to finance a long-term construction project and in doing so,capitalize the related interest expense.The company requires $2 million in financing.
The company currently has the following debt and equity items on its December 31^st,2019 Balance Sheet: There are 10,000 common shares outstanding which pay an annual dividend of $5 per share.The company can borrow a maximum of $5 million on its unsecured line of credit.
The company's bank has indicated its willingness to extend an additional credit facility in the amount of $1.5 million at an annual rate of 5% as of March 31^st,Year 6.These amounts remained outstanding throughout Year 6.

Question

A company wishes to finance a long-term construction project and in doing so,capitalize the related interest expense.The company requires $2 million in financing.
The company currently has the following debt and equity items on its December 31^st,2019 Balance Sheet:

There are 10,000 common shares outstanding which pay an annual dividend of $5 per share.The company can borrow a maximum of $5 million on its unsecured line of credit.
The company's bank has indicated its willingness to extend an additional credit facility in the amount of $1.5 million at an annual rate of 5% as of March 31^st,Year 6.These amounts remained outstanding throughout Year 6.

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The Answer of A company wishes to finance a long-term construction project and in doing so,capitalize the related interest expense.The company requires $2 million in financing. The company currently has the following debt and equity items on its December 31^st,2019 Balance Sheet: There are 10,000 common shares outstanding which pay an annual dividend of $5 per share.The company can borrow a maximum of $5 million on its unsecured line of credit. The company's bank has indicated its willingness to extend an additional credit facility in the amount of $1.5 million at an annual rate of 5% as of March 31^st,Year 6.These amounts remained outstanding throughout Year 6.

A Company Wishes to Finance a Long-Term Construction Project and in Doing