Question
Suppose that the company's capital structure consists of 80% bonds (Debt) and 20% equity.There is 21% corporate tax, 12% capital cost for equity capital, and
Suppose that the company's capital structure consists of 80% bonds (Debt) and 20% equity.There is 21% corporate tax, 12% capital cost for equity capital, and 4% capital cost for bonds.What is the difference between pre-tax WACC (pre-tax WACC) and post-tax WACC (after-tax WACC)?
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
