Based on the following information, do I need to change the risk adjustment on my model to 3%?
"Assume that KF's tax rate is 30%. The firm's WACC is 10%, but KF adjusts this amount up or down by 3 percentage points for projects with substantially more or less risk than average"
I have the following data in the model:
Tax rate 30.0%
Risk adjustor 0.0%
Is this correct?
Dear Student, Yes it should... View the full answer