Targaryen Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt Its cost of equity is 10 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent The relevant tax rate is 22 percent a What is the companys WACC (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) b What is the aftertax cost of debt (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Famas Llamas has a weighted average cost of capital of 10 2 percent The companys cost of equity is 12 percent, and its pretax cost of debt is 7 1 percent The tax rate is 24 percent What is the companys target debt equity ratio (Do not round intermediate calculations and round your answer to 4 decimal places, e g , 1616 )

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Targaryen Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Its cost of equity is

Targaryen Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent. The relevant tax rate is 22 percent.

a.	What is the companys WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Famas Llamas has a weighted average cost of capital of 10.2 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the companys target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)