1.

chapter 11.

WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $2,173 from Wendy, who will charge him 5% on the loan. He will also borrow $1,890 from Bebe, who will charge him 7% on the loan, and $937 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? % (Round to two decimal places.)