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Tom

Managerial Accounting

I have understood that Weighted average cost of capital is AFTER tax.

However in my sheet it is wrtitten The weighted average cost of capital is 8%. This is the nominal net of tax rate. What do they mean? that i still have to include the tax?

Posted in Math, asked by Tom, 5 years ago. 1658 hits.

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Yes.
Mariji Constante
Mariji Constante - 5 years ago
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Net of tax rate means that the accounting has been adjusted for the effects of income tax. Net of tax is calculated by taking gross figures, like the cost of capital, and subtracting the taxes required to be paid.

Alexander Dvorkin
Alexander Dvorkin - 5 years ago
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