- This topic has 25 replies, 12 voices, and was last updated 11 years ago by
.
-
Posts
-
There are arguments for both and the examiner always gives full marks whichever of the two rates that you use (even though obviously they give different final answers).
(Some argue that the tax saving is risk free – so use the risk-free rate; others would argue that the tax saying has the same risk as the return on debt – so use the return on debt 🙂 )
- You must be logged in to reply to this topic.