Rogot Instruments makes fine violins and cellos. It has

$1.2

million in debt outstanding, equity valued at

$2.5

million, and pays corporate income tax at rate

35%.

Its cost of equity is

13%

and its cost of debt is

8%.

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

nothing%.

(Round to two decimal places.)

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

Rogot's (effective after-tax) WACC is

nothing%.

(Round to two decimal places.)