PQR Corporation issued a 30-year, 7.5 percent bond 13 years ago. This bond pays annual interest and currently sells for 90 percent of its face value. The companys tax rate is 25 percent.

What is the pretax cost of debt? What is the after-tax cost of debt?

MBE 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 10 percent, and the cost of debt is 9.0 percent. The relevant tax rate is 30 percent. What is MBEs WACC?