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Sixx AM Manufacturing has a target debt—equity ratio of 0.61. Its cost of equity is 20...

Sixx AM Manufacturing has a target debt—equity ratio of 0.61. Its cost of equity is 20 percent, and its cost of debt is 9 percent. If the tax rate is 32 percent, what is the company's WACC?

Multiple Choice

  • 14%

  • 11.38%

  • 11.53%

  • 15.48%

  • 14.74%

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Answer #1

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