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Hello,
I’m confused about ‘Nominal before-tax weighted average cost of capital and after -tax cost of capital’. I like to know when to use these two cost of capital.Many thanks in advance.
We always use the after-tax WACC when discounting projects. The before tax cost of capital is of no relevance!
You must watch my free lectures on the cost of capital – the lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
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