[maddylondon]

I had the same answers as Nick in the NPV: £2.2m with the nominal and 960k in real terms. Although I thought that we should account for the perpetuity…but with the tax implication I was unsure how to do…
WACC was about 12%
But what was the right answer: average or end for receivable days? I put average because remembering that in Kaplan book was written to use average if available…
Then the equity policy I am not sure if the answers was describing the 2 theories: the history of dividends for shareholders that are keen in receiving it or the one that prefers to reinvest in profitable projects (I think it was M&M)?

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