Cost of Capital

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December 16, 2017 at 1:57 pm #423725
fredymaila
Participant
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A cost of capital or discount rate is given and not specified whether it is pre- or post-tax.

Do we have to assume it as pre-tax?

Actually, the post tax one must be used wherever tax is deducted.
Right?
December 17, 2017 at 9:53 am #423803
John Moffat
Keymaster
- Topics: 57
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We always use the after tax WACC, and if the WACC is given then the question will make it clear whether it is pre or post tax.
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