[supervisor]

Question…I noticed in Becker that the WACC calculated for the debt portion is net of tax. But then in Wiley, the book doesn’t mention anything about netting it with tax. Am I going crazy? Help!

Also, the lightbulb went off? or on? this morning when I was reviewing Free Cash Flow…its the calculation for Stmt of cash flow!! cant believe it took me that long to compare it to that. Smh. The next 23 days is going to be brutal!

BEC 10/13 PASSED 77
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Licensed in PA on 12/23/13. Yea boy!!

[musicamor]

When calculating WACC, you always want to include the income tax implications of the interest expense deductibility on the underlying debt. To not include it would be to not properly calculate WACC because the tax savings from interest expense deductibility decreases WACC.

Texas CPA - licensed in 2012!!!

[supervisor]

Thank you musicamor!! It make sense to include income tax implications but not sure why the other book didn't show it that way.

BEC 10/13 PASSED 77
AUD 04/12 PASSED 83
FAR 08/12 PASSED 76
REG 02/13 PASSED 76

Licensed in PA on 12/23/13. Yea boy!!

[FearTheBeard]

“I just look at the dopeness. But you, it's like you just look at the wackness, ya know?” – Quote from “The Wackness”, a 2008 coming-of-age drama film starring Josh Peck, who was previosly known for his work on the hit Nickelodeon show “Drake & Josh”.

[KJAX]

@ Beard- Your posts are one of the best things about this forum. Thanks for the constant entertainment. And btw we drive the same car… I feel like that somehow makes me cool. 🙂

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"Push your limits... then watch them back down."

[supervisor]

@fearthebeard, lmbo!!! too funny!

BEC 10/13 PASSED 77
AUD 04/12 PASSED 83
FAR 08/12 PASSED 76
REG 02/13 PASSED 76

Licensed in PA on 12/23/13. Yea boy!!

[Author]

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