What is the firms WACC given a tax rate

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Mullineaux Corporation has a target capital structure of 41 percent common stock, 4 percent preferred stock, and 55 percent debt. Its cost of equity is 18 percent, the cost of preferred stock is 6.5 percent, and the pre-tax cost of debt is 8.5 percent. What is the firm's WACC given a tax rate of 39 percent?

9.87 percent

10.43 percent

10.49 percent

13.38 percent

15.17 percent

Reference no: EM13953689

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