11.1

WACC.

Eric has another get-rich-quick idea but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $955from Wendy, who will charge him 5% on the loan. He will also borrow $724 from Bebe, who will charge him 7% on the loan, and $321 from Shelly, who will charge him 13% on the loan. What is the weighted average cost of capital for Eric? What is the weighted average cost of capital for Eric?

____% (Round to two decimal places)