bargeron

Bargeron Corporation has a target capital structure of 61 percent common stock, 6 percent preferred stock, and 33 percent debt. Its cost of equity is 13.6 percent, the cost of preferred stock is 6.6 percent, and the pretax cost of debt is 8.3 percent. The relevant tax rate is 34 percent. Compute the following: a. What is the company's WACC? b. What is the aftertax cost of debt