Its cost of equity is 19 percent the cost of preferred


Mullineaux Corporation has a target capital structure of 41 percent common stock, 4 percent preferred stock, and 55 percent debt. Its cost of equity is 19 percent, the cost of preferred stock is 6.5 percent, and the pre-tax cost of debt is 7.5 percent. What is the firm's WACC given a tax rate of 34 percent?

A. 9.87 percent
B. 10.43 percent
C. 10.77 percent
D. 13.38 percent

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Its cost of equity is 19 percent the cost of preferred
Reference No:- TGS0628730

Expected delivery within 24 Hours