Mullineaux corporation has a target capital structure of 65

Reference no: EM13571281

Mullineaux Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 38 percent.

a.	What is Mullineaux's WACC? (Round your answer to 2 decimal places. (e.g., 32.16))

WACC

b.	What is the aftertax cost of debt? (Round your answer to 2 decimal places. (e.g., 32.16))

Cost of debt

Reference no: EM13571281

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