- This topic has 3 replies, 2 voices, and was last updated 8 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Sir I want to ask part a since the after tax cost of capital is given but still why they have taken before cost of capital . Present value of net saving at 10% why they have divided they should discount I guess sir??? I don’t understand
Part (a) of the question specifically says ‘Ignore taxation in this part of the question’.
Also, they have discounted!!!! When it is a perpetuity (as it is here) we discount by dividing by the interest rate.
I do suggest that you watch my free lectures.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Gtk Inc June 2007’ is closed to new replies.