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Business, 14.04.2020 21:46 samdoesmath6352

Omega Corporation has 10 million shares outstanding, now trading at $55 per share. The firm has estimatedthe expected rate of return to shareholders at about 12%. It has also issued long-term bonds at an interestrate of 7% and has a debt value of $200 million. It pays tax at a marginal rate of 21%.

How much higher would WACC be if Omega used no debt at all?

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Omega Corporation has 10 million shares outstanding, now trading at $55 per share. The firm has esti...
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