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Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.8 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

$2.8

million and pays corporate income tax at rate

33 %

.

Its cost of equity is

12 %

and its cost of debt is

6 %

.

a. What is Rogot's pretax WACC?

b. What is Rogot's (effective after-tax) WACC?

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