P14-9 Calculating WACC [LO3] Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 6 percent, and the cost of debt is 8 percent. The relevant tax rate is 35 percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) (a) Mullineaux's WACC is percent. (b) Which of the following statement is true? (Click to select On an aftertax basis, preferred stock is cheaper than the debt. On an aftertax basis, debt is cheaper than the preferred stock