c11 q1

WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $5,662 from Wendy, who will charge him 4% on the loan. He will also borrow $4,289 from Bebe, who will charge him 6% on the loan, and $2,049 from Shelly, who will charge him 12% 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.)