What is the aftertax cost of debt

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Reference no: EM132057918

Mullineaux Corporation has a target capital structure of 55 percent common stock, 15 percent preferred stock, and 30 percent debt. Its cost of equity is 9 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 40 percent.

What is the company’s WACC?

What is the aftertax cost of debt?

Reference no: EM132057918

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