1. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $5,570 from Wendy, who will charge him 6% on the loan. He will also borrow $4,252 from Bebe, who will charge him 8% on the loan, and $2,178 from Shelly, who will charge him 14% on the loan. What is the weighted average cost of capital for Eric? a. 9.33% b. 8% c. 8.16% d. 14% 5. Elway Electronics has debt with a market value of $350,000, preferred stock with a market value of $150,000, and common stock with a market value of $450,000. If debt has a cost of 8%, preferred stock a cost of 10%, common stock a cost of 12%, and the firm has a tax rate of 30%, what is the WACC? a. 8.64% b. 9.12% c. 9.33% d. 9.46%