Question: Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $4,987, who will charge him

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

$4,987, who will charge him 6% on the loan. He will also borrow $3,054, who will charge him 8% on the loan, and $1,959, who will charge him 14% on the loan. What is

the weighted average cost of capital for Eric?

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