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What is the after tax cost of debt

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Question - Baron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 9 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent. The relevant tax rate is 21 percent.

a. What is the company's WACC?

b. What is the after tax cost of debt?

Reference no: EM133062705

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