sir in a WACC where we would need the MV of debt. If both coupon% and pre-tax Kd given then we directly discount teh coupons and redemption amount with pre-tax Kd.
But if coupon% and post-tax Kd given then to find the MV of debt, we would first have to multiply coupon x (1-T), and then discount by post-tax KD, right sir?
It is investors who determine the market value and they are not affected by company tax. Therefore if calculating the market value we discount the pre-tax flows to the investor at the pre-tax cost of debt.