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Ninecent corporation has a target capital structure of 65 percent common stock 10 percent preferred stock, 25 percent debt. its cost of equity is 9
Ninecent corporation has a target capital structure of 65 percent common stock 10 percent preferred stock, 25 percent debt. its cost of equity is 9 percent, the cost of preferred stock 4 percent, and the pretax cost of debt is 5 percent, the relevant tax rate is 21 percent.
a. what is the company's WACC?
answer: _____
b. what is the aftertax cost debt?
answer:______
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