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June 2021-AFM
ROBSON CO
APV calculation
Actually, it is a general question. In most of the questions from the APV part, the bank loan rate is directly taken as the Kd( cost of debt).
Kd=i*(1-t)
Why isn’t this formula applied when computing the kd from bank loan.The answer given was option D, can you please explain the reason. I got option C.
How should we treat irredeemable preference shares in this question??
Can you please show the calculations.Sir how did you get absorption costing as 145,000 as units sold are only 15000 and shouldn’t we subtract over absorbed overhead from it to get profit??
Why do we multiply it with 6??
Shouldn’t we multiply it with Overhead absorption rate per unit??
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