21. After-tax WACC (S16-5) Omega Corporation has 10 million shares outstanding, now trading at $55 per share.
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21. After-tax WACC (S16-5) Omega Corporation has 10 million shares outstanding, now trading at $55 per share. The firm has estimated the expected rate of return to shareholders at about 12%. It has also issued long-term bonds at an interest rate of 7% and has a debt value of
$200 million. It pays tax at a marginal rate of 21%.
a. What is Omega’s after-tax WACC?
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Related Book For 
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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