Question: Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.2 million and pays corporate income tax at rate 34%. Its cost of equity is 13% and its cost of debt is 5%.
a. Rogot's pretax WACC is ____%. (Round to two decimal places.)
b. Rogot's (effective after-tax) WACC is ___%.(Round to two decimal places.)