Question: Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.5 million and pays corporate income tax at

Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.5 million and pays corporate income tax at rate 21%. 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? a. What is Rogot's pretax WACC? Rogot's pretax 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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