Rogot Instruments makes fine violins and cellos. It has $ 1.4 million in debt? outstanding, equity valued at $ 2.9 ?million, and pays corporate income tax at rate 34 %. Its cost of equity is 12 % and its cost of debt is 5 %.
a. What is? Rogot's pre-tax? WACC? (round to two decimal places)
b. What is? Rogot's (effective? after-tax) WACC? (round to two decimal places)