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What is Rogot pretax WACC

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Reference no: EM132837452

Question - Rogot Instruments makes fine violins and cellos. It has $1.3 million in debt outstanding, equity valued at $2.8 million and pays corporate income tax at rate 30%. Its cost of equity is 13% and its cost of debt is 5%.

Required -

a. What is Rogot's pretax WACC?

b. What is Rogot's (effective after-tax) WACC?

Reference no: EM132837452

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