Omega Corporation has 11.1 million shares outstanding, now trading at $54 per share. The firm has estimated the expected rate of return to shareholders at about 10%. It has also issued $195 million of long-term bonds at an interest rate of 8%. It pays tax at a marginal rate of 30%.

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%