Question: When doing the math for part a i got 10.23% and it was wrong. Rogot Instruments makes fine violins and cellos. It has $1.0 million
Rogot Instruments makes fine violins and cellos. It has $1.0 million in debt outstanding, equity valued at $2.0 million and pays corporate income tax at rate 21%. Its cost of equity is 12% and its cost of debt is 7%. a. What is Rogot's pretax WACC? b. What is Rogot's (effective after-tax) WACC? a. What is Rogot's pretax WACC? Rogot's pretax WACC is (%. (Round to two decimal places.)
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