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please help me. i need help with a and b. thank you. Rumoit Motors has 40 million shares outstanding with a share price of $42
please help me. i need help with a and b. thank you.
Rumoit Motors has 40 million shares outstanding with a share price of $42 per share. In addicon, Rumoll has issued bonds with a total current market value of $487 milion. Suppose Rumoirs equity cost of capital is 14%, and its debt cost of capital is 10%. a. What is Rumolrs pre-tax WACC? b. If Rumolr's corporate tax rate is 22%, what is its alee-tax WACC? a. What is Rumoirs pre-tax WACC? Rumolts pre-tax WACC is 14. (Round to two decimal places.) b. If fumolrs corporate tax rate is 22%, what is its atler-tax WACC? Rumolt's after-tax Wicc is \%. (Round to two decimal places) Step by Step Solution
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