Dertermine what is pretax wacc

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Reference no: EM132074775

Question: Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.2 million and pays corporate income tax at rate 34%. Its cost of equity is 13% and its cost of debt is 5%.

a. Rogot's pretax WACC is ____%. (Round to two decimal places.)

b. Rogot's (effective after-tax) WACC is ___%.(Round to two decimal places.)

Reference no: EM132074775

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