Question: please help Rogot Instruments makes fine violins, violas, and cellos. It has $1.3 million in debt outstanding, equity valued at $2.3 million, and pays corporate
Rogot Instruments makes fine violins, violas, and cellos. It has $1.3 million in debt outstanding, equity valued at $2.3 million, and pays corporate income tax at rate 21%. Its cost of equity is 14% and its cost of debt is 6%. a. What is Rogot's pre-tax WACC? b. What is Rogor's (effective after-tax) WACC? a. What is Rogot's pre-tax WACC? Rogor's pre-tax WACC is%. (Round to two decimal places.) b. What is Rogot's (effective after-tax) WACC? Rogot's (effective after-tax) WACC is%. (Round to two decimal places.)
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