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November 16, 2019 at 10:50 am #552773
mashaf
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Respected sir in chapter 16 THE VALUATION OF AUDITIONS AND MERGERS” in example 3 we have not calculated tax relief for companies on debt?
Beacuse WACC calculated on 7% not on 7(1-t) ?
November 16, 2019 at 11:22 am #552780
John Moffat
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The question states that the cost of debt is 7% and is therefore assumed to be the cost to the company and therefore already after tax relief.
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