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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Beta of Debt
Sir
I watched your lecture CAPM, MM combined
So, in exam we assume Debt is risk-free and so the beta of debt is zero
thus, the second part of formula become irrelevant (from what I’ve understood from the lecture)
clear me if I’m wrong sir π
You are correct – the second part of the formula is always irrelevant in Paper F9.
Sir, in exam we assume the company is maintaining its current gearing?
Unless you are told differently, then yes.
ok sir
thanks π
You are welcome π