Question: Rogot Instruments makes fine violins and cellos. It has $ 1.1 million in debt outstanding, equity valued at $ 2.3 million, and pays corporate income

Rogot Instruments makes fine violins and cellos. It has $ 1.1 million in debt outstanding, equity valued at $ 2.3 million, and pays corporate income tax at rate 33 %. Its cost of equity is 14 % and its cost of debt is 5 %. a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC?

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