Schwesser mock 1q20

Do you all know why the cost of debt does not take into account taxes in formulating the WACC. Thanks!

Even I have the same doubt! Is it that we need to consider it as after tax cost of debt??

Experts pls reply

Can we download scswer mocks from somewhere ?

This was a mistake. In the problem it should have stated “After Tax Cost of Debt”. This is posted on the Schweser site.

Taken from Updates/Errata section of Schweser Website: "Practise Exams, Vol. 1,

Page 17: The cost of debt of 4.50% given in the last exhibit should be listed as after-tax. Posted: March 18, 2013"

yep, that was an error. always check errata first