Question: Rogot Instruments makes fine violins and cellos. It has $1.9 million in debt outstanding, has equity valued at $2.2 million, and pays corporate income tax

Rogot Instruments makes fine violins and cellos. It has $1.9 million

Rogot Instruments makes fine violins and cellos. It has $1.9 million in debt outstanding, has equity valued at $2.2 million, and pays corporate income tax at a rate of 21%. Its cost of equity is 11%, and its cost of debt is 8%. a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC

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