Question: Rogot Instruments makes fine violins and cellos. It has $1.9 million in debt outstanding, equity valued at $2.2 million and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.9 million in debt outstanding, equity valued at $2.2 million and pays corporate income tax at rate 35 % . Its cost of equity is 10 % and its cost of debt is 6 % .
a. What is Rogot's pretax WACC? (Round by two decimals)
b. What is Rogot's (effective after-tax) WACC? (Round by two decimals)
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