[ojasvi09]

@hits123 said:
And also, even more frustrating when you do practice questions they quote the share price as ex-div which is what you need for the questions. Whereas in this paper they decided to quote in cum div? I assume you just minus the dividend to be paid from the share price to get the ex-div? Anyone else do this

yes i did it too

[ojasvi09]

I agree with your answers

[ojasvi09]

@hits123 So for the nominal cash flows, i assumed you had to adjust for the inflation (contribution and fixed costs) and discount at 10%? I remember getting a NPV of 2.294m?

Then for the real cash flows, i assumed we didn’t adjust for inflation and use the discount factor of 6%? I think i got a NPV of 970k?

Also for the WACC did anyone get 12%?

Got approx the same for all 3 :O

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