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Question

Six AM Manufacturing has a target debt—equity ratio of 0.51. Its cost of equity is 18 percent, and its cost of debt is 9 percent. If the tax rate is 32 percent, what is the company's WACC?

  • 10.13%
  • 13.99%
  • 11.94%
  • 13.29%
  • 14.69%

 

 

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