Business, 12.03.2020 18:06 avagymnast421
Rumolt Motors has 22 million shares outstanding with a share price of $ 48 per share. In addition, Rumolt has issued bonds with a total current market value of $ 1 comma 168 million. Suppose Rumolt's equity cost of capital is 14 %, and its debt cost of capital is 11 %. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 40 %, what is its after-tax WACC? a. What is Rumolt's pre-tax WACC?
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Rumolt Motors has 22 million shares outstanding with a share price of $ 48 per share. In addition, R...
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