Question: Eric has another get rich quick idea, but needs funding to support it. He chooses an all debt funding scenario. He will borrow $1,659 from

Eric has another get rich quick idea, but needs funding to support it. He chooses an all debt funding scenario. He will borrow $1,659 from Wendy, who will charge him 6% on the loan. He will also borrow $1,280 from Bebe, who will charge 8% on the loan, and $1,061 from Shelly, who will charge him 14% on the loan. What is the weighted average cost of capital for Eric?

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