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Can anyone help me with Spread formula

Forums › ACCA Forums › ACCA FM Financial Management Forums › Can anyone help me with Spread formula

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
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  • Author
    Posts
  • April 13, 2013 at 12:24 pm #122369
    united26
    Member
    • Topics: 4
    • Replies: 8
    • ☆

    Hi All,

    Just wondering how do you go about calculating the Spread formula,

    Whatever way I calculate does not seem to work

    Say for instance this formula from the Pilot Paper, Q Ulnad

    So formula is 3(3/4 x 18 x 1,000,000/0.00014).3333

    When I just try to calculate what is in bracket it comes out as 9.642857143x 10 10 ?? whereas I think it should be coming out as 96428571428.571

    Can someone please help?

    Thanks in advance

    April 14, 2013 at 12:48 pm #122462
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    You do not multiply by .3333 (as you have written it).

    You take the amount in the brackets to the power .3333 (or take the third root, which is the same thing).

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