anonymous
  • anonymous
Is the cost of equity calculated from the CAPM model, pre -tax or post-tax. I think it is post-tax but cannot come up with a proper rationale. Can anyone help?
Finance
schrodinger
  • schrodinger
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anonymous
  • anonymous
it`s post tax. for cost of equity FCFE IS USED WHICH IS ALREADY TAX DEDUCTED SO CAPM is post tax.

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