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Rumolt Motors has 13 million shares outstanding with a share price of $ 37 per share. In addition, Rumolt has issued bonds with a total

Rumolt Motors has 13 million shares outstanding with a share price of $ 37 per share. In addition, Rumolt has issued bonds with a total current market value of $ 320 million. Suppose Rumolt's equity cost of capital is 14 %, and its debt cost of capital is 7 %. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 35 %, what is its after-tax WACC?

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