Question: 6. Rogot Instruments makes fine violins and cellos. It has $1 million in debt outstanding, equity valued at $2 million, and pays corporate income tax

6. Rogot Instruments makes fine violins and cellos. It has $1

6. Rogot Instruments makes fine violins and cellos. It has $1 million in debt outstanding, equity valued at $2 million, and pays corporate income tax at a rate of 21%. Its cost of equity is 12% and its cost of debt is 7%. a) What is Rogot's pretax WACC? (5) b) What is Rogot's effective after-tax) WACC

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