Rumolt Motors has 18 million shares outstanding with a share price of $21 per share. In addition, Rumolt has issued bonds with a total current market value of $112 million. Suppose Rumolt's equity cost of capital is 13%, and its debt cost of capital is 5%. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 22%, what is its after-tax WACC?

Pfd Company has debt with a yield to maturity of 8.2%, a cost of equity of 14.4%, and a cost of preferred stock of 8.6%. The market values of its debt, preferred stock, and equity are $14.5 million, $2.6 million, and $15.4 million, respectively, and its tax rate is 21%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.