MM proposition II

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November 16, 2019 at 11:12 pm #552809
aamir2111
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Dear Tutor,

In MM proposition II (with Tax) fromula (which is given in the exam), Kd is pre-tax cost of debt. Is that same as ‘debt investor’s required rate of return’?
November 17, 2019 at 10:32 am #552892
John Moffat
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Yes it is 🙂

I do work through an example of how to use the formula in my free lectures.
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