Cash based valuation methods

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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May 23, 2018 at 3:40 am #453461
claudia1
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As always…thank you very much for all your help. I am wondering why the debt in wacc calculation was not multiplied by the tax. This is after ungearing and regearing. Page 78, example 3.
May 23, 2018 at 8:16 am #453509
John Moffat
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- Topics: 57
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It is because the question says that the cost of debt is 7%, and so this will already be after the tax saving.
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