Question: Rogot Instruments makes fine violins and cellos. It has $ 1 . 3 million in debt outstanding, equity valued at $ 2 . 8 million

Rogot Instruments makes fine violins and cellos. It has $1.3 million in debt outstanding, equity valued at $2.8 million and pays corporate income tax at rate 21%. Its cost of equity is 12% and its cost of debt is 6%.
If the pretax WACC is 10.10%, what is the effective after tax WACC?
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