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BPP Kit Q217 Tinep (a)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP Kit Q217 Tinep (a)

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • December 5, 2018 at 12:42 pm #487480
    Sun
    Member
    • Topics: 27
    • Replies: 9
    • ☆

    Dear Sir,
    BPP Kit Q217 Tinep(a): When calculate the WACC using book value, Why Market value of Equity includes the Reserve amount? I think the Market Value of equity here should only talk about the Ordinary Shares Market value, and WACC is (200/200+200)*10.9%+(200/200+200)*4.93% ?

    December 5, 2018 at 3:46 pm #487617
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    See my answer to your other question (on gearing), because it is the same reasoning 🙂

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