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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › M & M Prop 2 with tax
In Proposition 2 with Tax how do u make keU(Cost of equity ungeared) the subject formula
If you want you can learn a rearranged formula. However I think that would be awful because you have enough to remember anyway, the formula is not very often relevant for the exam, and the obvious danger is that in the exam you remember it wrongly!
Better is just to use basic algebra.
If you look at the link below you will see that someone asked last month the same thing, with specific figures.
I have then used the formula ‘backwards’ step-by-step in order to show him how to calculate Keu.
I think it should help you 🙂
Thanks alot John
You are welcome 🙂