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Omega Corporation has 11 million shares outstanding, now trading at $65 per share. The firm has estimated the expected rate of return to shareholders at
Omega Corporation has 11 million shares outstanding, now trading at $65 per share. The firm has estimated the expected rate of return to shareholders at about 11%. It has also issued long-term bonds at an interest rate of 7% and has a debt value of $250 million. It pays tax at a marginal rate of 21%. What is Omegas after-tax WACC? What would WACC be if Omega had not to pay taxes and the expected rate of return to shareholders were unchanged? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places
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