Problem:
Mullineaux Corporation has a target capital structure of 75 percent common stock, 15 percent preferred stock, and 10 percent debt. Its cost of equity is 8 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent.
Requirement:
Question 1: What is Mullineaux's WACC?
Question 2: What is the aftertax cost of debt?
Note: Show step by step solution and I also want complete calulation.