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poojakumar

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Active 4 weeks ago
  • Topics: 6
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Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 29, 2024 at 10:30 am #701447
    960ab5ec3297b506c5d04d45b28f8871b78fa4ba9bf799350c2f0a895a4a2a52 80poojakumar
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    I’m sorry I misunderstood
    I know WACC is a % figure but with the same concept then what do I do?

    February 29, 2024 at 10:16 am #701444
    960ab5ec3297b506c5d04d45b28f8871b78fa4ba9bf799350c2f0a895a4a2a52 80poojakumar
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    for the final answer then yes
    but my doubt is on
    for example: to calculate WACC I had to calculate cost of equity and cost of debt, which resulted in me rounding it off to at least to 2 decimal places if not then just as a whole number but when I put that into the WACC formula I ended up with the answer 8487 due to the rounding off but the answer was 8490. Is my answer acceptable and I won’t be penalised for it or what is the best way forward for such questions?

    February 29, 2024 at 10:08 am #701442
    960ab5ec3297b506c5d04d45b28f8871b78fa4ba9bf799350c2f0a895a4a2a52 80poojakumar
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    yes, I got that part of calculating for the buy option and choosing the lower option between buy or lease
    but my main concern is for lease which years are we supposed to discount years 2-6 or years 1-5 and why?

    November 17, 2022 at 8:57 am #671694
    960ab5ec3297b506c5d04d45b28f8871b78fa4ba9bf799350c2f0a895a4a2a52 80poojakumar
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    • Topics: 6
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    in that case, you could show both the figures as a negative amount in the spreadsheet then use the SUM formula which will add the 2 negative figures

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