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Rumolt Motors has 41 million shares outstanding with a share price of $37 per share. In addition, Rumolt has issued bonds with a total current

Rumolt Motors has 41 million shares outstanding with a share price of $37 per share. In addition, Rumolt has issued bonds with a total current market value of $683 million. Suppose Rumolt's equit cost of capital is 15%, and its debt cost of capital is 5%. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 30%, what is its after-tax WACC? a. What is Rumolt's pre-tax WACC? Rumolt's pre-tax WACC is \%. (Round to two decimal places.)

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