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Rumolt Motors has 45 million shares outstanding with a share price of $10 per share. In addition, Rumolt has issued bonds with a total current

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Rumolt Motors has 45 million shares outstanding with a share price of $10 per share. In addition, Rumolt has issued bonds with a total current market value of $122 million. Suppose Rumolt's equity cost of capital is 9%, and its debt cost of capital is 5%. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 25%, what is its after-tax WACC

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