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Rogot Instruments makes fine violins and cellos. It has $1.2 million in debt outstanding, equity valued at $2.2 million, and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.2 million in debt outstanding, equity valued at $2.2 million, and pays corporate income tax at rate 40%. Its cost of equity is 11% and its cost of debt is 7% a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC? a. What is Rogot's pre-tax WACC? Rogot's pre-tax 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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