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

Accounting

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:

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

13.3%
16.49%
12.33%
14.92%
15.71%

Note: Solve the problem and show all work.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173482

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