Question
Jevons was tasked with estimating the WACC for Microsoft. As part of his calculation, you find that he ignored the company's tax rate when calculating
Jevons was tasked with estimating the WACC for Microsoft. As part of his calculation, you find that he ignored the company's tax rate when calculating the cost of debt. Why is the tax rate included in the WACC calculation?
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Financial Risk Manager Handbook
Authors: Philippe Jorion
6th Edition
0470904011, 978-0470904015
