Please be clear about your work so I can understand how to do these questions. Thank you!

Problem 3: Calculating WACC Mullineaux Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity capital is 11 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The applicable tax rate is 35 percent. a) What is Mullineaux's Weighted Average Cost of Capital (WACC)? b) 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 because it costs less than debt. Is he correct? What would you tell the president? Create your Original Solution Below - Be sure to show all calculations and clearly indicate ans