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Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $426 from Wendy, who will
Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow
$426
from Wendy, who will charge him
7%
on the loan. He will also borrow
$383
from Bebe, who will charge him
9%
on the loan, and
$191
from Shelly, who will charge him
15%
on the loan. What is the weighted average cost of capital for Eric?
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