Homework: HW3 - Chapter 15 MM1963 Save Score: 4 of 8 pts 4 of 11 (11 complete) HW Score: 96%, 96 of 100 pts x P15-11 (similar to) Question Help Rumolt Motors has 35 million shares outstanding with a price of $31 per share. In addition, Rumolt has issued bonds with a total current market value of $1,588 million. Suppose Rumolt's equity cost of capital is 12%, and its debt cost of capital is 9%. a. What is Rumolt's pretax weighted average cost of capital? b. If Rumolt's corporate tax rate is 21%, 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 10.22 %. (Round to two decimal places.) b. If Rumolt's corporate tax rate is 21%, what is its after-tax weighted average cost of capital? Rumolt's after-tax weighted average cost of capital is %. (Round to two decimal places.)