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Business, 31.07.2019 17:20 robyn88

Targaryen corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. its cost of equity is 12 percent, the cost of preferred stock is 8 percent, and the pretax cost of debt is 9 percent. the relevant tax rate is 24 percent. a. what is the company’s 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.)

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