Rogot Instruments makes fine violins and cellos. It has $1.9 million in debtoutstanding, equity valued at $2.3

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Rogot Instruments makes fine violins and cellos. It has $1.9 million in debtoutstanding, equity valued at $2.3 million and pays corporate income tax at rate 21%. Its cost of equity is 11% and its cost of debt is 6%.

a. What isRogot's pretaxWACC?

Rogot's pretax WACC is ..............%. (Round to two decimalplaces.)

b. What isRogot's (effectiveafter-tax) WACC?

Rogot's (effectiveafter-tax) WACC is ...............%. (Round to two decimalplaces.)

Posted Date: May 18, 2024 07:03 AM

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Rogot Instruments makes fine violins and cellos. It has $1.9 million in debtoutstanding, equity valued at $2.3

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