Question: Rogot Instruments makes fine violins and cellos. It has $1.4 million in debt outstanding, equity valued at $2.3 million and pays corporate income tax at

Rogot Instruments makes fine violins and cellos. It has $1.4 million in debt outstanding, equity valued at $2.3 million and pays corporate income tax at rate 40% . Its cost of equity is 12% and its cost of debt is 6%.

a. What is Rogot's pretax WACC?

b. What is Rogot's (effective after-tax) WACC?

(Round to two decimal places.)

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