What is the company wacc-what is the aftertax cost of debt

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Bargeron Corporation has a target capital structure of 63 percent common stock, 8 percent preferred stock, and 29 percent debt. Its cost of equity is 14.3 percent, the cost of preferred stock is 7.3 percent, and the pretax cost of debt is 9 percent. The relevant tax rate is 38 percent. a. What is the company’s WACC? What is the aftertax cost of debt.

Reference no: EM131566047

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