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(a) Dale Instruments makes fine violins and cellos. It has 2.1 million in debt outstanding, equity valued at 3.2 million. The company pays a corporate

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(a) Dale Instruments makes fine violins and cellos. It has 2.1 million in debt outstanding, equity valued at 3.2 million. The company pays a corporate tax of 25% and its cost of equity is 11% and its cost of debt is 5%. (i) Calculate Dale Instruments' pretax Weighted Average Cost of Capital?(4 marks) (ii) Calculate Dale Instruments' (effective after-tax) Weighted Average Cost of Capital? Comment on your result

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