Why is the cost of capital measured on an after-tax basis?

Joan is a single college student who is claimed as a dependent by her parents
January 3, 2018
Their salaries for the year total $84,600 and they have taxable interest income of $3,900
January 3, 2018

Why is the cost of capital measured on an after-tax basis?

Finance Basics

Why is the cost of capital measured on an after-tax basis? Why is use of a weighted average cost of capital rather than the cost of the specific source of funds recommended?

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service