Target capital structure of common stock

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Reference no: EM13928621

Mullineaux Corporation has a target capital structure of 62 percent common stock, 7 percent preferred stock, and 31 percent debt. Its cost of equity is 12.7 percent, the cost of preferred stock is 5.7 percent, and the cost of debt is 7.4 percent. The relevant tax rate is 30 percent.

A) What is WACC?

B) What is the aftertax of debt?

Reference no: EM13928621

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