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2 votes

How is the pre-tax and post-tax return calculated?

So this is what he has done: Take pre-tax investment of $1. At 25% tax rate, 0.75 goes into the retirement account, which grows at 15% for 30 years: $ 0.75*1.15^{30}=50 $ Then he applies the ...
Magic is in the chain's user avatar
1 vote

How do people transfer money to offshore accounts while avoiding any connection with that money?

Nothing very technical, offshore accounts are based on legal tools created by law firms specialized in offshore banking located in tax heavens (such as Mossack-Fonseca). They will create layers of ...
MoAkim's user avatar
  • 13
1 vote

Why is there inconsistency in WACC vs unlevered return?

In fact, the WACC is misinforming us; it is neither a cost nor a required return but a weighted average of a cost and a required return. The corporate finance community promotes the WACC as a ...
Chen Deng-Ta's user avatar
1 vote

Why is there inconsistency in WACC vs unlevered return?

There may be two points you are missing: You are allowed to apply the CAPM to calculate the cost of equity $R_e$. However, one of the CAPM assumptions is, that taxes are not taken into account into ...
skoestlmeier's user avatar
  • 2,916

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