Suppose that the company's capital structure consists of 80% bonds (Debt) and 20% equity.There is 21% corporate tax, 12%

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answerhappygod
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Suppose that the company's capital structure consists of 80% bonds (Debt) and 20% equity.There is 21% corporate tax, 12%

Post by answerhappygod »

Suppose that the company's capital structure consists of 80%
bonds (Debt) and 20% equity.There is 21% corporate tax, 12% capital
cost for equity capital, and 4% capital cost for bonds.What is the
difference between pre-tax WACC (pre-tax WACC) and post-tax WACC
(after-tax WACC)?
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