Cost of Capital

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May 24, 2013 at 4:32 pm #127076
namratajain2012
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In kaplan exam kit, question no. 66- cost of debt is already provided @ 10%. in part b of the question why the cost of debt is again calculated ?
May 25, 2013 at 6:32 am #127115
John Moffat
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The question gives the pre-tax cost of debt.

For WACC we need the after-tax cost of debt.
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