What is aftertax cost of debt

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Reference no: EM132047229

Mullineaux Corporation has a target capital structure of 45 percent common stock and 4 percent preferred stock, with the remaining percent in debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 32 percent. What is the aftertax cost of debt?

Reference no: EM132047229

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