Omega Corporation has 10.4 million shares outstanding, now trading at $59 per share. The firm has estimated the expected rate of return to shareholders at about 11%. It has also issued $220 million of long-term bonds at an interest rate of 6%. It pays tax at a marginal rate of 35%.

a.What is Omega's after-tax WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b.What would WACC be if Omega used no debt at all? (Hint: For this problem you can assume that the firm's overall beta [_A] is not affected by its capital structure or by the taxes saved because debt interest is tax-deductible.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)