Omega Corporation has 10.5 million shares outstanding, now trading at $60 per share. The firm has estimated the

[ad_1]

Omega Corporation has 10.5 darling divides unappropriated, now trading at $60 per divide. The steadfast has estimated the

expected admonish of reappear to divideholders at environing 10%. It has too issued $225 darling of long-term bonds at an cause admonish of 7%. It pays tax at a ultimate admonish of 34%.

a. What is Omega's after-tax WACC?(Do not rotund interjacent calculations. Enter your solution as a percent rotunded to 2 decimal places.)

After-tax WACC            % 

b. What would WACC be if Omega used no liability at all? (Hint: For this substance you can claim that the steadfast's overall beta [βA] is not improbable by its important organization or by the taxes saved accordingly liability cause is tax-deductible.) (Do not rotund interjacent calculations. Enter your solution as a percent rotunded to 2 decimal places.)

WACC            % 

Show past

[ad_2]
Source integrate