Question
Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $3.4 million, and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $3.4 million, and pays corporate income tax at rate 22%. Its cost of equity is 14% and its cost of debt is 5%.
a. What is Rogot's pre-tax WACC? Rogot's pre-tax WACC is enter your response here%. (Round to two decimal places.)
b. What is Rogot's (effective after-tax) WACC? Rogot's (effective after-tax) WACC is enter your response here%. (Round to two decimal places.)
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The Handbook Of Financial Modeling
Authors: Jack Avon
2nd Edition
1484265394, 978-1484265390
