Rogot Instruments makes fine violins and cellos. It has ?$1.9 million in debt? outstanding, equity valued...

70.2K

Verified Solution

Question

Finance

Rogot Instruments makes fine violins and cellos. It has ?$1.9million in debt? outstanding, equity valued at ?$2.2 million andpays corporate income tax at rate 35 % . Its cost of equity is 10 %and its cost of debt is 6 % .

a. What is? Rogot's pretax? WACC? (Round by two decimals)

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

Answer & Explanation Solved by verified expert
4.4 Ratings (795 Votes)
I have calculated both the pre tax and after tax wacc for    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students