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Rumolt Motors has 73 million shares outstanding with a price of $12 per share. In addition, Rumolt has issued bonds with a total current market

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Rumolt Motors has 73 million shares outstanding with a price of $12 per share. In addition, Rumolt has issued bonds with a total current market value of $682 million. Suppose Rumolt's equity cost of capital is 11%, and its debt cost of capital is 8% a. What is Rumolt's pretax weighted average cost of capital? b. If Rumolt's corporate tax rate is 30%, what is its after-tax weighted average cost of capital

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