A what is rogots pre-tax wacc b what is rogots effective


Rogot Instruments makes fine violins and cellos. It has $ 1.3 million in debt? outstanding, equity valued at $ 2.7 ?million, and pays corporate income tax at rate 30 %. Its cost of equity is 11 % and its cost of debt is 8 %. (Round to two decimal places)

a. What is? Rogot's pre-tax? WACC?

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

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Finance Basics: A what is rogots pre-tax wacc b what is rogots effective
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