avto dec 03Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › avto dec 03This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts June 2, 2017 at 1:47 pm #389720 mansoorParticipantTopics: 424Replies: 542☆☆☆☆in this question, we use CAPM to get the ‘cost of capital’.but capm gives us Ke, cost of equity. shd we not be using WACC here??can u pls explain sir June 2, 2017 at 4:42 pm #389758 John MoffatKeymasterTopics: 56Replies: 53843☆☆☆☆☆But how exactly are you going to calculate a WACC? There is no information about the capital structure or the financing.You are given the beta of the investment and you have no choice but to discount at the rate applicable to that level of risk.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘avto dec 03’ is closed to new replies.