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This is a bad mistake of BPP.
What they have done is taken an old exam question and shortened it (because the original question was 25 marks, but these days the questions are for less marks).
The original question actually said as part of the question that the cost of equity was 12% (you can find the original question on the ACCA website).
However, when BPP shortened it, they accidentally removed that line!Thank you. I couldn’t figure out how they got 12% because the question didn’t provide any information to calculate KE.
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