Question: Rogot Instruments makes fine violins and cellos. It has $1.2 million in debt outstanding, equity valued at $2.7 million and pays corporate income tax at

Rogot Instruments makes fine violins and cellos. It has $1.2 million in debt outstanding, equity valued at

$2.7 million and pays corporate income tax at rate 21%. Its cost of equity is 11% and its cost of debt is 8%.

  1. What is Rogot's pretax WACC? (Round to two decimalplaces.)
  2. What is Rogot's (effective after-tax) WACC? (Round to two decimalplaces.)

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