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if in a question real after tax cost of capital and nominal after tax cost of capital is given we will choose nominal after tax coc and if it is not given we will calculate by dividing annual rate of tax by real after tax coc, right?
It depends on what the question requires!! You have written “dividing annual rate of tax by real after tax coc”, but this does not make sense 🙂
If you are referring to a specific question from a past exam (or from the BPP Revision Kit) then tell me which question and what the problem is!
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