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WACC.Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $6 comma 793 from Wendy,
WACC.Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $6 comma 793 from Wendy, who will charge him 4% on the loan. He will also borrow $4 comma 666 from Bebe, who will charge him 6% on the loan, and $2 comma 541 from Shelly, who will charge him 12% on the loan. What is the weighted average cost of capital for Eric?
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