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Precision Cuts has a target debt-equity ratio of 0.55. Its cost of equity is 15.4 percent, and its pretax cost of debt is 7.8 percent.

Precision Cuts has a target debt-equity ratio of 0.55. Its cost of equity is 15.4 percent, and its pretax cost of debt is 7.8 percent. If the tax rate is 32 percent, what is the company's WACC?

10.91 percent
11.82 percent
11.28 percent
10.72 percent
10.20 percent

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