Question: Eric has anotherget-rich-quick idea, but needs funding to support it. He chooses anall-debt funding scenario. He will borrow $4 comma 521 4,521 fromWendy, who will

Eric has anotherget-rich-quick idea, but needs funding to support it. He chooses anall-debt funding scenario. He will borrow $4 comma 521

4,521 fromWendy, who will charge him 5

5% on the loan. He will also borrow $4 comma 075

4,075 fromBebe, who will charge him 7

7% on theloan, and $2 comma 404

2,404 fromShelly, who will charge him 13

13% on the loan. What is the weighted average cost of capital forEric?

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