2014 dec MCQ

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May 14, 2015 at 1:37 pm #245930
jonyrazib
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hello sir!
Question no 9 !
why the used before tax cost of capital ?
May 14, 2015 at 1:47 pm #245934
jenny3549
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The question asks for the Market Value of the debt. Market value calculation uses the investor required rate of return, ie the before tax cost of debt.

Just finished doing the December paper now!
May 14, 2015 at 2:29 pm #245953
John Moffat
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Why not watch the lectures of me working through the whole of the Paper F9 exam from December 2014 where I explain all of the answers! 🙂
May 14, 2015 at 4:20 pm #245965
jonyrazib
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Thank u!! <3
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