Question
when we calculate WACC under Australia imputation tax system ,why D0 or D0 does not matter when we gross up dividend ? for example ,for
when we calculate WACC under Australia imputation tax system ,why D0 or D0 does not matter when we gross up dividend ?
for example ,for ordinary shares ,we need to calculate the cost of equity ,Ke. Ke=D0*1+g)/price +g, under imputation ,we need to gross up the dividend ,so D0*=D1-Tc) x(1-Teff), why here D can be either d1 or d0 and does not matter ?
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
