1. You have $200 dollar in a bank earning 20% return every year. How long will it take you to save enough to be able to buy a gift for your friend worth $500?
2. Calculating WACC Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 11.5 percent, and the cost of debt is 5.9 percent. The relevant tax rate is 35 percent. What is the company’s WACC?