Expected rate of return to shareholders

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Omega Corporation has 200 million shares outstanding, now trading at $3.25 per share. The firm has estimated the expected rate of return to shareholders at about 14%. It has also issued long-term bonds at an interest rate of 8%. It pays tax at a marginal rate of 20%. What is Omega's after-tax WACC? Assume that $350 million of long-term bonds have been issued.

Reference no: EM133121480

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