Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $92 per share. What is the bank's cost of preferred stock? Mullineaux Corporation has a target capital structure of 50% common stock, 5% preferred stock, and 45% debt. Its cost of equity is 16%, the cost of preferred stock is 7.5%, and the cost of debt is 9%. The relevant tax rate is 35%. What is Mullineaux's WACC? The company president has approached you about Mullineaux's capital structure. He wants to know why the company doesn't use more preferred stock financing, since it costs less than debt. What would you tell the president