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Rogot Instruments makes fine violins and cellos. It has $1.8 million in debt outstanding, equity valued at $2.5 million, and pays corporate income tax at
Rogot Instruments makes fine violins and cellos. It has $1.8 million in debt outstanding, equity valued at $2.5 million, and pays corporate income tax at rate 32%. Its cost of equity is 10% and its cost of debt is 6%. a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC
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