[Molyka]

@Cardine said:
You are required to use the b/4 tax on Market value – available to public, who have their own tax benefits.

After tax for companies with the applicable tax rate – look at the slide on debt valuation and read the BPP text (this is the text I use) on the subject, or text on the topic. There is a distinction you need to make and you must understand that before you calculate values.

I hope i was of help and wish the BEST in your future – success for your results.

Regards,

Thank you so much for your explanation. It really helps me understand clearly about this. Wish you all the best.
Regards,

[Molyka]

Could anybody please explain the reason why we should use before-tax cost of debt instead of after-tax cost of debt for Q9?

[Author]

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