Connect faster with
Signup faster with
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?
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.