Rumolt Motors has 16 million shares outstanding with a share price of $59 per share. In addition, Rumolt has issued bonds with a total current market value of $855 million. Suppose Rumolt's equity cost of capital is 11%, and its debt cost of capital is 6%.

a. What is Rumolt's pretax weighted average cost of capital?

b. If Rumolt's corporate tax rate is 40%, 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 %. (Round to two decimal places.)