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Please solve this problem showing the calculations steps.Thank you 6. Rogot Instruments makes fine violins and cellos. It has $1.4 million in debt outstanding, equity
Please solve this problem showing the calculations steps.Thank you
6. Rogot Instruments makes fine violins and cellos. It has $1.4 million in debt outstanding, equity valued at $2.8 million and pays corporate income tax at rate 36%, Its cost of equity is 14% and its cost of debt is 5%. 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.) b. What is Rogot's (effective after-tax) WACC? Rogot's (effective after-tax) WACC is %. (Round to two decimal places.)
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