Problemsixx am manufacturing has a target debt-equity ratio, Ask an Expert

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Problem:

Sixx AM Manufacturing has a target debt-equity ratio of 0.56. Its cost of equity is 20 percent, and its cost of debt is 12 percent.

Required:

If the tax rate is 33 percent, what is the company's WACC?

A. 13.3%
B. 16.49%
C. 12.33%
D. 14.92%
E. 15.71%

Note: Please show basic calculation

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162614

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