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Rumolt Motors has 68 million shares outstanding with a share price of $38 per share. In addition, Rumolt has issued bonds with a total current

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Rumolt Motors has 68 million shares outstanding with a share price of $38 per share. In addition, Rumolt has issued bonds with a total current market value of $1,767 million. Suppose Rumolt's equity cost of capital is 15%, and its debt cost of capital is 7%. a. What is Rumolt's pre-tax WACC? b. If Rumolt's corporate tax rate is 30%, what is its after-tax WACC

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