Omega Corporation has 11.2 million shares outstanding, now trading at $53 per share. The firm has estimated the expected rate of return to shareholders at about 12%. It has also issued $190 million of long-term bonds at an interest rate of 9%. It pays tax at a marginal rate of 35%.

a. What is Omegas 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 firms 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 %