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Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 15 percent, and the cost of debt is 8 percent. The relevant tax rate is

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

 

Apr 10 2021 View more View Less

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