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Rumolt Motors has 60 million shares outstanding with a share price of $39 per share. In​...

Rumolt Motors has 60 million shares outstanding with a share price of $39 per share. In​ addition, Rumolt has issued bonds with a total current market value of $3,073
million. Suppose​ Rumolt's equity cost of capital is 13%​, and its debt cost of capital is 9%.

a. What is​ Rumolt's pre-tax​ WACC?

b. If​ Rumolt's corporate tax rate is 30%​, what is its​ after-tax WACC?

A. answer for part a = 10.73%; answer for part b = 9.20%

B. answer for part a = 9.73%; answer for part b = 10.17%

C.  answer for part a = 11.02%; answer for part b = 11.03%

D. answer for part a = 9.95%; answer for part b = 9.55%

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