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 $2,886 from Wendy, who will

WACC.Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $2,886 from Wendy, who will charge him 6% on the loan. He will also borrow $2, 278 from Bebe, who will charge him 8% on the loan, and $836 from Shelly, who will charge him 14% on the loan. What is the weighted average cost of capital for Eric? What is the weighted average cost of capital for Eric?

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