1. Yesterday & co. has a target capital structure of 60% common stock, 15% preferred stock, and 25% debt. Its cost of equity is 10%, the cost of preferred stock is 5%, and the pretax cost of debt is 8%. The relevant tax rate is 23%. What is the companys WACC?

   		8.3%
   		7.7%
   		3.2%
   		9.2%

1. Using the same information as in (13), what is the after tax cost of debt?

   		8%
   		6.2%
   		7.2%
   		5%