Cookie Dough Manufacturing Has a Target Debt-Equity Ratio of

Multiple Choice

Cookie Dough Manufacturing has a target debt-equity ratio of .76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent?

A) 11.76 percent
B) 12.78 percent
C) 13.11 percent
D) 11.48 percent
E) 12.53 percent