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Rumolt Motors has 5 4 million shares outstanding with a share price of $ 2 7 per share. In addition, Rumolt has issued bonds with
Rumolt Motors has million shares outstanding with a share price of $ per share. In addition, Rumolt has issued
bonds with a total current market value of $ million. Suppose Rumolt's equity cost of capital is and its debt cost
of capital is
a What is Rumolt's pretax WACC?
b If Rumolt's corporate tax rate is what is its aftertax WACC?
a What is Rumolt's pretax WACC?
Rumolt's pretax WACC is
Round to two decimal places.
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