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Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Capital Structure -KEU – how to find it using the formula
H
I am trying to rearrange the formula
Keg=Keu+(keu-kd)((vd(1-t)/ve))
to find Keu, please could you help note the steps tht I need to take in order to find this?
Many Thanks
Neive
Hi,
I wouldn’t try and rearrange it without putting in any numbers first as it is too complicated. The best way to solve it is to put the figures given to you in the question so that the only variable left is Keu. Ten begin to multiply everything out and rearrange the formula to calculate Keu.
Alternatively, if it is a multiple choice question then you could use the given answers to see which one makes the equation work!
Thanks