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.