Omega Corporation has 10.5 million shares outstanding, now trading at $60 per share. The firm has estimated the expected rate of return to shareholders at about 10%. It has also issued $225 million of long-term bonds at an interest rate of 7%. It pays tax at a marginal rate of 34%.

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

After-tax WACC%

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.)

WACC%