Rumolt Motors has 16 million shares outstanding with a share price of $59 per share. In addition, Rumolt has issued bonds with a total current market value of $855 million. Suppose? Rumolt's equity cost of capital is 11%, and its debt cost of capital is 6%.
a. What is? Rumolt's pretax weighted average cost of? capital?
b. If? Rumolt's corporate tax rate is 40%, what is its? after-tax weighted average cost of? capital?
a. What is? Rumolt's pretax weighted average cost of? capital?
?Rumolt's pretax weighted average cost of capital is ?%. ?(Round to two decimal? places.)