Cost of Capital (WACC) -- Before- and After-Tax
Hey all, I am seeking some input regarding the WACCs/discount rates you use to find the NPV for before- and after-tax cash flows. I am looking at a NNN retail deal occupied by two tenants. Is it customary to go through the whole CAPM exercise, or is it more common to use a shortcut? Further, do you simply multiply the before-tax discount rate by (1-tax rate) to arrive at the after-tax discount rate? Really appreciate any insight as to how you determine your before- and after-tax discount rates. I have looked at a few text books and articles online, but seeing a lot of different things. Thanks!
Alias voluptatibus sit vel non eos. Aut ab rerum deleniti dolor minus illo.
Quaerat labore aut voluptates nesciunt cum commodi. Similique ducimus itaque aut consequatur voluptatem.
Officiis laudantium natus enim laboriosam. Reprehenderit nesciunt culpa qui impedit voluptatibus necessitatibus velit et. Asperiores fugiat ut voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...