Sixx AM Manufacturing has a target (market value) debt—equity ratio of 0.7. Its cost of equity is 15 percent, and its cost of debt is 12 percent. If the tax rate is 33 percent, what is the company's WACC?
NOTE: You need to convert the D-E ratio into the capital structure weights before you can use the WACC equation
Dear Student, Sol: ========================== Q . Sixx AM Manufacturing has a target (market value) debt—equity ratio... View the full answer