Target capital structure-what is aftertax cost of debt

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Reference no: EM131068313

Mullineaux Corporation has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Its cost of equity is 13 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 38 percent.

What is the companies WACC %?

What is the aftertax cost of debt %?

Reference no: EM131068313

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