Rogot Instruments makes fine violins and cellos. It has ?$1.9
million in debt? outstanding, equity valued...
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Rogot Instruments makes fine violins and cellos. It has ?$1.9million in debt? outstanding, equity valued at ?$2.2 million andpays corporate income tax at rate 35 % . Its cost of equity is 10 %and its cost of debt is 6 % .
a. What is? Rogot's pretax? WACC? (Round by two decimals)
b. What is? Rogot's (effective? after-tax) WACC? (Round by twodecimals)
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I have calculated both the pre tax and after tax wacc for
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