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Mullineaux Corporation has a target capital structure of 60 percent common stock, 15 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 35 percent. What is the company’s WACC?

User Ayrat
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1 Answer

5 votes

Answer:

7.58%( Approximately).

Step-by-step explanation:

Please see attachment

Mullineaux Corporation has a target capital structure of 60 percent common stock, 15 percent-example-1
User Sitram
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