Sixx am manufacturing has a target debtmdashequity ratio of


Sixx AM Manufacturing has a target debt—equity ratio of 0.54. Its cost of equity is 18 percent, and its cost of debt is 11 percent. If the tax rate is 32 percent, what is the company's WACC?

A. 14.31%

B. 15.03%

C. 11.17%

D. 12.32%

E. 13.6%

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Financial Management: Sixx am manufacturing has a target debtmdashequity ratio of
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