Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt....

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Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt....

Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 11.2 percent, and the cost of debt is 5.9 percent. The relevant tax rate is 22 percent.

What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Answer 1

Answer #1

After tax cost of Debt Pretax costof debt*(1-tax rate) 0.059*(1-0.22) 0.04602 4.60% Costs Weight*cost 0.04602 0.018408 0.112

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Answer 2

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Mullineaux Corporation has a target capital structure of 65 percent common stock and 35 percent debt....

Mullineaux Corporation has a target capital structure of 55 percent common stock, 10 percent preferred stock,...

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Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt....

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