Determine what is the aftertax cost of debt

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Mullineaux Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 6 percent, and the pretax cost of debt is 8 percent. The relevant tax rate is 34 percent.

What is Mullineaux's WACC?

What is the aftertax cost of debt?

Reference no: EM13334222

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