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Targaryen Corporation has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt. lts cost of equity is 12 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 24 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.) What is the aftertax cost of debt? (Do not round intermediate calculations and enter b. your answer as a percent rounded to 2 decimal places, e.g, 32.16.) a WACC b. Cost of debt < Prey 90f 10 Next > 5 7 8 MA
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