Question: Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow 2,543 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

2,543

from Wendy, who will charge him

5%

on the loan. He will also borrow

1,914

from Bebe, who will charge him

7%

on the loan, and

1,543

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?

nothing%

(Round to two decimal places.)

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