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Cost of Capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of Capital

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
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  • May 24, 2013 at 4:32 pm #127076
    namratajain2012
    Member
    • Topics: 23
    • Replies: 17
    • ☆

    In kaplan exam kit, question no. 66- cost of debt is already provided @ 10%. in part b of the question why the cost of debt is again calculated ?

    May 25, 2013 at 6:32 am #127115
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54819
    • ☆☆☆☆☆

    The question gives the pre-tax cost of debt.

    For WACC we need the after-tax cost of debt.

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