Q2

Mullineaux Corporation has a target capital structure of 35 percent common stock, 15 percent preferred stock, and 50 percent debt. Its cost of equity is 6 percent, the cost of preferred stock is 9 percent, and the pre-tax cost of debt is 13 percent. What is the firm's WACC given a tax rate of 33 percent?

		7.39%
		7.81%
		8.19%
		8.59%
		9.19%