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PLEASE HELP ANSWER A-B > 16-17 (similar to) Question Help Rumolt Motors has 25 million shares outstanding with a share price of $15 per share.
PLEASE HELP ANSWER A-B
> 16-17 (similar to) Question Help Rumolt Motors has 25 million shares outstanding with a share price of $15 per share. In addition, Rumolt has issued bonds with a total current market value of $112 million. Suppose Rumolt's equity cost of capital is 14%, and its debt cost of capital is 7%. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 21%, what is its after-tax WACC? a. What is Rumolt's pre-tax WACC? Rumolt's pre-tax WACC is %. (Round to two decimal places.)Step by Step Solution
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