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Rogot Instruments makes fine violins and cellos. It has $1.9million in debt outstanding, equity valued at $2.2million and pays corporate income tax at rate 32
Rogot Instruments makes fine violins and cellos. It has $1.9million in debt outstanding, equity valued at $2.2million and pays corporate income tax at rate 32 %. Its cost of equity is 14 %and its cost of debt is 8 %.a. What is Rogot's pretax WACC?b. What is Rogot's (effective after-tax) WACC?
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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