What is aftertax cost of debt

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Reference no: EM131535585

Bargeron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 13 percent, the cost of preferred stock is 6 percent, and the pretax cost of debt is 7.7 percent. The relevant tax rate is 35 percent.

A.What is the company’s WACC?

b. What is the aftertax cost of debt?

Reference no: EM131535585

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