HotRod Motors has a target debt to equity ratio of 30%. The yield to maturity on the company's outstanding bonds is 8.4%, the company's tax rate is 25% and the cost of equity of 12.9%. Assume the company has no preferred stock outstanding. What is the company's WACC? a. b. Assume the same 8.4% bond yield to maturity as for part a. If the company's WACC is estimated at 12.0% based on the WACC of similar companies, what is the company's estimated cost of equity capital