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Rogot Instruments makes fine violins and cellos. It has $1.9 million in debtoutstanding, equity valued at $2.1 million and pays corporate income tax at rate
Rogot Instruments makes fine violins and cellos. It has $1.9 million in debtoutstanding, equity valued at $2.1 million and pays corporate income tax at rate 34 %
Its cost of equity is 10 % and its cost of debt is 8 %
a. What isRogot's pretaxWACC?
b. What isRogot's (effectiveafter-tax) WACC?
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