FIN/419 LAB HOMEWORK 5 QUESTONS

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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
$953953
from Wendy, who will charge him
88%
on the loan. He will also borrow
$605605
from Bebe, who will charge him
1010%
on the loan, and
$442442
from Shelly, who will charge him
1616%
on the loan. What is the weighted average cost of capital for Eric?
What is the weighted average cost of capital for Eric?
 
[removed]nothing%
 (Round to two decimal places.)
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