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John Moffat.
John Moffat.-
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mansoor
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could u please explain
“prior charge”
“economic profit”
thank u
John Moffat
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It would help to know the context, normally prior charge refers to bonds/loans etc and means that they get paid back first if the company has problems.
Economic profit is revenue less all costs including opportunity costs (as covered in Paper F5). However you are not asked to calculate the economic profit as such in F9.
mansoor
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prior charge came up in questions f9 …
economic profits came up in an mcq
if i cd ask u something else here… is WACC a money rate or a real rate. which lecture shd i see to understand this point.
John Moffat
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I know that they have come up – I did not say differently.
However, I repeat that it depends on the context of the question.WACC is the money/nominal rate.
You need to watch all of the lectures on order – there is no point at picking individual ones separately.
mansoor
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ok.. thank u for being patient….:) .. my f9 on 11 march so its getting scary..:)
John Moffat
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You are welcome, and all the best for 11 March 🙂
mansoor
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