Question: Rogot Instruments makes fine violins and cellos. It has $1.6 million in debt outstanding, equity valued at $2.4 million and pays corporate income tax at

Rogot Instruments makes fine violins and cellos. It has $1.6 million in debt outstanding, equity valued at $2.4 million and pays corporate income tax at rate 21%. Its cost of equity is 12% and its cost of debt is 5% a. What is Rogat's pretax WACC? b. What is Rogot's (effective after-tax) WACC? a. What is Rogot's pretax WACC? Rogot's pretax WACC IS D% (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.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
