has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 5 percent, and the cost of debt is 7 percent. The relevant tax rate is 35 percent a. What is the company's WACC? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) WACC 96 b. What is the after-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) After-tax cost of debt