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FMConvertible Bond

Mmsh2411y ago
When do we use before-tax cost of debt and after-tax cost of debt when calculating current market value of a bond? Thank you in advance.
John MoffatJohn MoffatTutor11y ago#1
The market value is determined by the investors, and they are not affected by company tax. You always use the pre-tax cost when calculating the market value. The free lectures on this will help you.
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