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Rogot Instruments makes fine violins and cellos. It has $1.7 million in debt outstanding equity valued at $2.9 million and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.7 million in debt outstanding equity valued at $2.9 million and pays corporate income tax at rate 21%. Its cost of equity is 10% and its cost of debt is 6%.
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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