Feel free to post questions on Core 1 here.
Question on Finance material F47 (powerpoint) slide # 4.
Is there a calculation error in the WACC?
=0.03+0.016
=0.046
Less tax (1-0.35)
= 0.046*0.65
=0.0299
2.99%?
Perhaps I'm misssing something very simple ;)
figured it out. Tax is only applicable to the debt, so 0.03 + (0.016*0.65) = WACC.
I have worked on MSQ.
Please let me know where is this question. Maybe I did it and I have answer.