What is Rogots pretax WACC

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Reference no: EM132846237

Question - Rogot Instruments makes fine violins and cellos. It has $1.9 million in debt outstanding, equity valued at $2.4 million and pays corporate income tax at rate 36%. Its cost of equity is 10% and its cost of debt is 8%.

Required -

a. What is Rogot's pretax WACC?

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

Reference no: EM132846237

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