Mullineaux corporation has a target capital structure of 50

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Mullineaux Corporation has a target capital structure of 50 percent common stock, 5 percent preferred stock, and 45 percent debt. Its cost of equity is 8 percent, the cost of preferred stock is 6 percent, and the pretax cost of debt is 8 percent. The relevant tax rate is 30 percent.

a.What is Mullineaux's WACC?

b.What is the aftertax cost of debt?

Reference no: EM13622869

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