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Rumolt Motors has 68 million shares outstanding with a price of $28 per share. In addition, Rumolt has issued bonds with a total current market
Rumolt Motors has 68 million shares outstanding with a price of $28 per share. In addition, Rumolt has issued bonds with a total current market value of $2149 million. Suppose Rumolt's equity cost of capital is 15%, and its debt cost of capital is 11%. If Rumolt's corporate tax rate is 38%, what is its after-tax weighted average cost of capital? O 11.59% 10.66% 13.60% 13.25% 10.45%
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