Question: Rogot Instruments makes fine violins and cellos. It has $1.81.8 million in debt outstanding, equity valued at $2.12.1 million and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.81.8 million in debt outstanding, equity valued at $2.12.1 million and pays corporate income tax at rate 21 %21%. Its cost of equity is 11 %11% and its cost of debt is 5 %5%. a. What is Rogot's pretax WACC? b. What is Rogot's (effective after-tax) WACC
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