Mullineaux Corporation has a target capital structure of 46 percent common stock and 4 percent preferred stock, with the remaining percent in debt. Its cost of equity is 8 percent, the cost of preferred stock is 2 percent, and the pretax cost of debt is 5 percent. The relevant tax rate is 33 percent. What is Mullineaux's WACC?
Brother’s and Sister’s Inc. has a capitalization structure of $5 million in long-term debt at a 5% interest rate, and $45 million in common equity at a 10% ROE. Calculate the weighted cost of capital (WACC) for this company.