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2. [20 points] Rumolt Motors has 30 million shares outstanding with a price of $15 per share. In addition, Rumolt has issued bonds with a
2. [20 points] Rumolt Motors has 30 million shares outstanding with a price of $15 per share. In addition, Rumolt has issued bonds with a total current market value of $150 million. Suppose Rumolt's equity cost of capital is 10%, and that its debt cost of capital is 5%. If Rumolt's corporate tax rate is 35%, what is its weighted average cost of capital
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