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Rogot Instruments makes fine violins and cellos. It has $1.2 million in debt outstanding, equity valued at $2.5 million, and pays corporate income tax at rate 35%. Its cost of equity is 12% and its cost of debt is 5%. (Round answers two decimal places)

a. What is Rogot's pre-tax WACC?

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

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92173680

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