Question

Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt....

Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent. What is Mullineaux's WACC?


Common stock weight = 70%
Debt weight = 30%
Cost of Equity = 15%
Cost of Debt = 8%
Tax Rate = 35%

WACC= ?
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Answer #1

Use the following values to calculate the value of the WACC as follows: Debt is 30% and common stock is 70%. Cost of equity i

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