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Bivouc Co. has a target debt/equity ratio of 0.333 and it is exposed to a tax rate of 30%. The companys cost of equity is

Bivouc Co. has a target debt/equity ratio of 0.333 and it is exposed to a tax rate of 30%. The companys cost of equity is 14% and its pre-tax cost of debt is 6%. The companys after-tax WACC will be approximately:

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none of the given answers

11.55%

between 12% to 12.55%

12%

12.55%

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