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Rumolt Motors has 3 3 million shares outstanding with a share price of $ 1 5 per share. In addition, Rumolt has issued bonds with

Rumolt Motors has 33 million shares outstanding with a share price of $ 15 per share. In addition, Rumolt has issued bonds with a total current market value of $ 138 million. Suppose Rumolt's equity cost of capital is 12%, and its debt cost of capital is 7%.
a. What is Rumolt's pre-tax WACC?
b. If Rumolt's corporate tax rate is 21%, what is its after-tax WACC?

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