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Rumolt Motors has 59 million sh ares outstanding with a price of $50 per share. In addition, Rumolt has issued bonds with a total current

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Rumolt Motors has 59 million sh ares outstanding with a price of $50 per share. In addition, Rumolt has issued bonds with a total current market value of $995 million. Suppose Rumolt's equity cost of capital is 9%, and its debt cost of capital is 6%. a. What is Ru molt's pretax weighted average cost of capital? b. If Rumeit's corporate tax rate is 21%, what is its after-tax weighted average cost of capital? a. What is Ru moit's pretax weighted average cost of capital? Rumolt's pretax weighted average cost of capital is \"Kn. {Round to two decimal places.) b. It Rumoit's corporate tax rate is 21 \"Na, what is its aftertax weighted average cost of capital? Rumolt's afterta): weighted average cost of capital is DEE. [Round to two decimal pieces.)

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