Tax deduction doubts

This topic has 0 replies, 1 voice, and was last updated 7 years ago by ajithgthakkan.

Viewing 1 post (of 1 total)

Author

Posts
July 31, 2018 at 8:36 pm #465467
ajithgthakkan
Member
- Topics: 3
- Replies: 1
Sir,
1) Why do we deduct tax from the cost of debt in WACC when we have already found out the cost of debt using the after tax interest?

2) Why do we deduct tax from the market value of debt in the ungearing of beta calculation?

Ve/(ve + Vd(1-T)) * beta
Author

Posts

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.