Question: WACC Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $4,596 from Wendy, Who

WACC Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $4,596 from Wendy, Who will charge him 4% on the loan. He will also bortow $3,320 from Bebe, who will charge him 6% on the loan, and $2,084 from Shelly, Who will charge him 12% on the loan. What is the weighted average cost of capital for Eric? What is the we-ghted average cost of capital for Erie? 1. (Round to two docimal places.)

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