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Capital Structure -KEU – how to find it using the formula

Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Capital Structure -KEU – how to find it using the formula

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 22, 2016 at 9:27 am #334478
    neive
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    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

    August 25, 2016 at 9:44 am #335113
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    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

  • Author
    Posts
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