WACC - After tax and before tax

[trogulj]

I came past a question in a mock today which wanted you to calculate the value of a firm using a one stage FCFF model. They gave you all the variables to calculate WACC including the tax rate. In the answers they have used the before tax WACC.
When should we use the after tax wacc and before tax wacc?

 

[edupristine]

WACC is calculated using weighted average of cost of debt post tax and cost of equity (not considering preference shares etc).
Generally after tax cost of debt is used. More can be said only after seeing the question.

 

[CMLSML]

If this is PE V1, there is an errata on their website

 

[trogulj]

thanks cmlsml