He will also borrow 1500 from bebe who will charge 8 on the


Eric has another get rich quick idea, but needs funding to support it. He chooses an all debt funding scenario. He will borrow $2,000 from Wendy, who will charge him 6% on the loan. He will also borrow $1,500 from Bebe, who will charge 8% on the loan, and $800 from Shelly, who will charge him 14% on the loan. What is the weighted average cost of capital for Eric?

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Finance Basics: He will also borrow 1500 from bebe who will charge 8 on the
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