### Acme debt-equity ratio and wacc

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##### Reference no: EM131041719

The ACME Suction Cup company has \$4,500 of debt and \$10,500 of common stock equity. The total value of the company is \$15,000. The company's cost of equity is 11.5 percent, the cost of debt is 5.9 percent and the relevant tax rate is 35 percent.

What is ACME's debt-equity ratio and WACC?

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