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What is rumolt pretax wacc

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Reference no: EM132686949

Rumolt Motors has 30 million shares outstanding with a price of $15 per share. In addition, Rumolt has issued bonds with a total current market value of $150 million. Suppose Rumolt's equity cost of capital is 10%, and its debt cost of capital is 5%.

a) What is Rumolt's pretax WACC?

b) If the corporate tax rate is 35%, what is its after-tax WACC?

Reference no: EM132686949

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