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10% and its debt cost of Rumolt Motors has 50 million shares outstanding with a share price of $40 per share. In addition, Rumolt has

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10% and its debt cost of Rumolt Motors has 50 million shares outstanding with a share price of $40 per share. In addition, Rumolt has issued bonds with a total current market value of S1,541 million. Suppose Rumolt's equity cost of capital capital is 5% a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 30%, what is its after-tax WACC? a. What is Rumolt's pre-tax WACC? Rumolt's pre-tax WACC is%. (Round to two decimal places.) Help me solve this View an example Ask my instructor Clear all Check

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