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CPAstdy
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Joined: 22 May 2008
Online Status: Offline
Posts: 72

Posted: 30 Jan 2009 at 12:23 \| IP Logged

Hi,

Question: In computing WACC, If the problems states that the after-tax cost of equity is 15% and marginal tax is 40%. How come you don't need to convert it to non-tax when cost of equity tax consideration is not relevant?

Thanks.

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