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The cost of debt can be given as a before-tax or after-tax amount. The cost of equity is always given as: Select one: a. A
The cost of debt can be given as a before-tax or after-tax amount. The cost of equity is always given as:
Select one:
a. A before-tax amount by convention.
b. A before-tax amount since dividends and buybacks are subtracted on the 'Profit and Loss' before calculating taxes.
c. A before-tax amount to be consistent with how yields to maturity on debt are normally stated.
d. An after-tax amount by convention.
e. An after-tax amount since dividends and buybacks are subtracted after calculating taxes in the income statement.
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