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:
If the tax rate is 33 percent, what is the company's WACC?
A. 13.3%
B. 16.49%
C. 12.33%
D. 14.92%
E. 15.71%
Note: Please show basic calculation