Suppose that the company's capital structure consists of 80% bonds (Debt) and 20% equity.There is 21% corporate tax, 12%
Posted: Sun Jun 05, 2022 10:39 am
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)?
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)?