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Business, 16.04.2020 04:01 cindykulei3719

WACC.

Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario.

He will borrow $4 comma 911 from Wendy, who will charge him 4% on the loan.

He will also borrow $4 comma 305 from Bebe, who will charge him 6% on the loan, and $2 comma 784 from Shelly, who will charge him 12% on the loan.

What is the weighted average cost of capital for Eric?

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