WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an...
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Finance
WACC.
Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow
$1,882
from Wendy, who will charge him
4%
on the loan. He will also borrow
$1,248
from Bebe, who will charge him
6%
on the loan, and
$870
from Shelly, who will charge him
12%
on the loan. What is the weighted average cost of capital for Eric?
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