Rumolt motors has 16 million shares outstanding with a, Ask an Expert

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Rumolt Motors has 16 million shares outstanding with a share price of $59 per share. In addition, Rumolt has issued bonds with a total current market value of $855 million. Suppose? Rumolt's equity cost of capital is 11%, and its debt cost of capital is 6%.

a. What is? Rumolt's pretax weighted average cost of? capital?

b. If? Rumolt's corporate tax rate is 40%, what is its? after-tax weighted average cost of? capital?

a. What is? Rumolt's pretax weighted average cost of? capital?

?Rumolt's pretax weighted average cost of capital is ?%. ?(Round to two decimal? places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92392118

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