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One more question, did anyone get that question in mtq#2 i think, to calculate the M.V of loan note that had like 7% coupon rate, 3.5% rate of int paid after 6 months, to be redeemed at a premium at 4% after some years??
I marked the 106 smth answerr thereHey Vanessa!!
Got the same qs as yours..NPV was 2000-3000 i remember that…for working capital, what I did was that I just calculated the present value of it, just the work capital and its recovery and at the end, its present value..I DID NOT use the prev qs and calculate the NPV again (although I did write in comments that when we input work cap in the main qs, we would get a +NPV of smth around 64)
I have a qs, I did enough to secure atleast 4 if not 5 marks right?? I think I made a mistake not to calculate the NPV from the start again or even just calculate everything from taxable profits onwards to give a much better view of NPV instead of just writing in comments..