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Hello Sir,
I have the below doubt?
Ex interest MV would mean we would not take after tax cost of debt? What is the logic behind this?
Ex-interest does not mean that at all !!!!
Ex-interest is the MV assuming that this years interest has just been paid (as opposed to cum interest which would mean that this years interest was about to be paid).
I have explained in my reply to your previous question why we do not use the after-tax cost of debt, which has nothing at all to do with the question asking for an ex-interest value.
You really should not waste time attempting questions in the Revision Kit until you have fully studied everything in the syllabus.
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