Target debt equity ratio, Sixx AM Manufacturing has a

Target debt equity ratio

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Reference no: EM13766305

Sixx AM Manufacturing has a target (market value) debt equity ratio of 0.6. Its cost of equity is 19 percent, and its cost of debt is 9 percent. If the tax rate is 34 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.

Reference no: EM13766305

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