Problem related to target debt-equity ratio


Sixx AM Manufacturing has a target debt-equity ratio of 0.50. Its cost of equity is 14 percent, and its cost of debt is 8 percent. If the tax rate is 38 percent, what is the company's WACC? (Round your answer to 2 decimal places. (e.g., 32.16))

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Accounting Basics: Problem related to target debt-equity ratio
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