1. Which one of the following should we expect to see the LOWEST beta?
Large-company stocks
Long-term government bonds
U.S. Treasury bills
Small-company stocks
2. Sixx AM Manufacturing has a target debt—equity ratio of 0.54. Its cost of equity is 17 percent, and its cost of debt is 10 percent. If the tax rate is 35 percent, what is the company's WACC?
11.33%
13.98%
12.65%
10.18%
13.32%