QUESTION 1 (4 marks) As they are working through the fascinating topics examined in their corporate valuation class, Sar
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QUESTION 1 (4 marks) As they are working through the fascinating topics examined in their corporate valuation class, Sar
QUESTION 1 (4 marks) As they are working through the fascinating topics examined in their corporate valuation class, Sarah says to Connor ... “You know, it is often said that the vanilla WACC treats the interest tax shield as an increase in cash flow whereas the standard WACC treats the interest tax shield as a decrease in the discount rate. But I think this is only half the story What do you think? (maximum 300 words - you can refer to the interest tax shield as the ITS in your answer)