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Business, 06.05.2020 03:57 isaacbrown7one

Mullineaux Corporation has a target capital structure of 70 percent common stock, 15 percent preferred stock, and 15 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent. The relevant tax rate is 35 percent. a. What is the company’s WACC?b. What is the aftertax cost of debt?

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