Rumolt Motors has $36$ million shares outstanding with a price of $$54$ per share. In addition, Rumolt has issued bonds with a total current market value of $$1,018$ million. Suppose Rumolt's equity cost of capital is $14\%,$ and its debt cost of

capital is $7\%.$

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

b$.$ If Rumolt's corporate tax rate is $21\%,$ 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 $13\mathrm{.}78\%.($Round to two decimal places.$)$