Given the tax rate of 40% of this corporation, calculate its after-tax weighted average cost of capital (WACC) for Duke Corporation

Exercise: Weighted Average Cost of Capital Overview Part I. Given the tax rate of 40% of this corporation, calculate its after-tax weighted average cost of capital (WACC) for Duke Corporation. Table: the before-tax weighted average cost of capital (WACC) for Duke Corporation Source of Capital Weight (1) Cost (2) Weighted Cost (1) X (2) Long-Term Debt .4 5.6% 2.24% Preferred Stock .1 10.6% 1.06% Common Stock Equity .5 13% 6.5% Totals 1 9.8% Part II. Answer true, false or uncertain and explain briefly on the following statement. "the after-tax wacc cannot ever be higher than the before-tax wacc."