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Mlima Co (June 2013)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Mlima Co (June 2013)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • September 7, 2017 at 8:37 am #406315
    cys94
    Member
    • Topics: 30
    • Replies: 29
    • ☆☆

    Dear John,

    As per appendix 4, why we assume Yield to Maturity is 7%? Do we always assume YTM equals to the borrowing rate?

    September 7, 2017 at 9:26 am #406338
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    The yield to maturity will equal the lenders required rate of return, which we assume to be the same required return as that on other future borrowings (unless obviously told different 🙂 )

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  • The topic ‘Mlima Co (June 2013)’ is closed to new replies.

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