Question: Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $3,970 from Wendy, who will

Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $3,970 from Wendy, who will charge him 5% on the loan. He will also borrow $2,926 from Bebe, who will charge him 7% on the loan, and $1,104 from Shelly, who will charge him 13% on the loan. What is the weighted average cost of capital for Eric?

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