Mullineaux Corporation has a target capital structure of 70 percent common stock, 15 percent preferred stock, and 15 percent debt.

Its cost of equity is 12 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent.

The relevant tax rate is 35 percent.

a. What is Mullineauxs WACC?

b. What is the aftertax cost of debt?