1. Mullineaux Corporation has a target capital structure of 35 percent common stock, 5 percent preferred stock, and 60 percent debt. Its cost of equity is 15 percent, the cost of preferred stock is 7.5 percent, and the pre-tax cost of debt is 9 percent. What is the firm's WACC given a tax rate of 30 percent?

   	A.	6.4%
   	B.	7.4%
   	C.	8.4%
   	D.	9.4%
   	E.	10.4%

2.

Mullineaux Corporation has a target capital structure of 40 percent common stock, 15 percent preferred stock, and 45 percent debt. Its cost of equity is 8 percent, the cost of preferred stock is 12 percent, and the pre-tax cost of debt is 6 percent. What is the firm's WACC given a tax rate of 34 percent?

	A.	6.8%
	B.	7.0%
	C.	7.2%
	D.	7.4%
	E.	7.6%