Coeden (Dec/12) question - Cost of debt/market value of debt

It is investors who determine the market value, and they are not affected by company tax. And yes - it is always ex div and ex int market values that are used in the WACC calculation. (But ex-interest has nothing at all to do with tax - it simply means that interest has just been paid) All of this is explained in my free lectures :-)

Completely new lecture notes and lectures will be uploaded in the next few days - not because the syllabus has changed, but to improve and expand on the existing material. So either wait until next week, or else watch the Paper F9 lectures on the valuation of securities (because this is revision of F9).