内容简介:Topics Covered After Tax WACC Tricks of the Trade Capital Structure and WACC Adjusted Present Value Discounting Safe, Nominal Cash Flows After Tax WACC The tax benefit from interest expense deductibility must be included in the cost of funds. This tax benefit reduces the effective cost of debt by a factor of the marginal tax rate. Example - Sangria Corporation The firm has a marginal tax rate of 35%. The cost of equity is 14.6% and the pretax cost of debt is 8%. Given the book and market value balance sheets, what is the tax adjusted WACC?