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Hi
Does the F9 exam follow a set format? Will investment appraisal via dcf still be examined, bit confused by some other comments.
No – there is no set format (except for the fact that there are 4 questions of 25 marks each). However the examiner usually does ask something from each of the main syllabus areas.
DCF is certainly still examinable. Basic DCF is assumed knowledge from Paper F2. In addition, there is of course capital, rationing, lease and buy, and replacement decisions.
Hi ,,,
Just got a doubt in Cost of Capital chapter …………… When ,, calculating the value of bonds .. how to determine the discount factors ,,,,,??
If you are calculating the market value of a bond, then you discount at the investors required rate of return.
This will either be given, or there will be details of other bonds and you then assume that the required return will be the same. (So you will then need to calculate the return to investors on these other bonds).
PS Please ask new questions as a separate post (not under an existing thread) so that everyone can have the benefit of the answer.
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