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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chapter no 15 example no 12
Sir,
How did u get 3 yrs in that example
As per the question it’s 2020 nd now the yr is 2007.
Secondly y did u used 10% instead of 7%.
Thanku
As far as the years are concerned, there is a typing mistake which I will have corrected. The debentures should be convertible in 2010 – not 2020.
Thank you for noticing.
As far as 10% is concerned, the only time I used 10% was as one of the ‘guesses’ for calculating the IRR, which is normal.
The 7% is the growth rate in the market value of the shares and has been used correctly in both the lecture and the answer in the lecture notes.