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Sir, please can you give me guidance on when to know what rate of cost of capital to use? Before or after tax, my mind has gone blank. Any help would be gratefully appreciated as always.
Thank you.
The cost of capital when discounting is always after tax. (The cost of equity is not affected by tax; the cost of debt is always calculated after tax.)
My hero, thank you! I am so under prepared for this exam due to work commitments it’s unreal!
Doing my hardest though!
Thank you Sir!
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