Question: Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.6 million, and pays corporate income tax at

Rogot Instruments makes fine violins and cellos. It has $1.1 million

Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.6 million, and pays corporate income tax at rate 20%. Its cost of equity is 10% and its cost of debt is 5%. a. What is Rogot's pretax WACC? b. What is Rogot's (effective after-tax) WACC

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