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What was the weighted average interest rate Colgate faced on its short-term borrowings in 2013? Enter with 1 decimal place and with % sign (Ex: 9.9%)

Answer :

anthougo

Answer:

The weighted average interest rate that Colgate faced on its short-term borrowings in 2013 was:

2.2%.

Explanation:

Colgate Palmolive reported on page 62 of its 10-K annual report for the fiscal year ended December 31, 2013, that "the weighted-average interest rate on short-term borrowings of $13 in 2013 and $54 in 2012 included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2013 and 2012 was 2.2% and 1.0% respectively."

The weighted average interest rate is a product of the different interest rates on its short-term borrowings with their proportional weights.  The weights help in determining the average interest rate given their proportional sizes to the total interest expense.

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