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Acq & mergers-example 3

JJamie8y ago
Hi John, could you tell me the Wacc debt calculation, 7%x40/100, why corp tax not taken into account ? Thank you!
John MoffatJohn MoffatTutor8y ago#1
The question says that the cost of debt is 7%. If it is the cost of debt that tax will already have been taken into account when calculating it.
JJamie8y ago#2
Thank you very much John! Happy New Year!
John MoffatJohn MoffatTutor8y ago#3
You are welcome, and Happy New Year to you also :-)
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