We can determine the target WACC for Apix Printing Inc., given these assumptions," she says as she hands you a piece of paper that says the following:
- Weights of 40% debt and 60% common equity (no preferred equity)
- A 35% tax rate
- Cost of debt is 8%
- Beta of the company is 1.5
- Risk-free rate is 2%
- Return on the market is 11%