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nominal before/after weighed average cost of capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › nominal before/after weighed average cost of capital

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • February 24, 2016 at 7:02 pm #301881
    josy87
    Member
    • Topics: 172
    • Replies: 215
    • ☆☆☆

    Hi Sir
    June 2012 ridag and June 2012 Gadir. The first case considered the after tax rate and the 2nd considered the before tax. On understand why as I considered the after tax for both.

    February 24, 2016 at 11:48 pm #301911
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54754
    • ☆☆☆☆☆

    With regard to Ridag, we always discount investments using the after tax WACC.

    However I cannot see a question in the June 2012 exam called Gadir and so I cannot really answer that part of your question 🙁

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