Part $1$ of $2$

Points: $0$ of $1$

Rumolt Motors has $70$ million shares outstanding with a share price of $$19$ per share. In addition, Rumolt has issued bonds with a total current market value of $$1,827$ million. Suppose Rumolt's equity cost of capital is $15\%,$ and its debt cost of capital is $10\%.$

a$.$ What is Rumolt's pre$-$tax WACC?

b$.$ If Rumolt's corporate tax rate is $30\%,$ what is its after$-$tax WACC?

a$.$ What is Rumolt's pre$-$tax WACC?