Cost of Equity Interview Quesion
If my tax rate changes, does this impact cost of equity? Why or Why Not?
Any help here would be greatly appreciated! Thank you
If my tax rate changes, does this impact cost of equity? Why or Why Not?
Any help here would be greatly appreciated! Thank you
Career Resources
It effects the levered beta of the company which in turn effects the cost of equity.
Formula: Levered Beta= unlev. Beta(1+(D/E)(1-T))
Thank you!
First answer is correct. This seems like a relatively tough question for a summer analyst to get, no?
Agreed!
So, a tax increase would result in a decrease in cost of equity, correct?
Thank you!
Correct
Walk me through how a $20 increase in revenue would flow through the statement?
Name all the reasons why one company trades higher/lower on an EV/EBITDA basis
Veniam non repellendus quia blanditiis praesentium aliquid expedita. Laudantium id odit aspernatur accusamus. Fugit quisquam corporis ea earum deserunt. Ullam qui earum facere.
Velit error aperiam tempore voluptatem quia pariatur porro perspiciatis. Quam molestias hic aut non. Vel quo asperiores impedit repellendus delectus nihil. Dolor sunt dolorem aut. Beatae ab aspernatur dolor quibusdam cumque non delectus magnam. Ut vero molestias minima nesciunt aperiam.
Ipsa impedit et quidem asperiores consectetur adipisci magnam porro. Placeat nihil laudantium est quaerat et repudiandae error rerum. Ullam at aliquid reiciendis quis doloribus impedit qui. Consequuntur explicabo aut ut facere est modi.
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...