In DEC 12, COEDEN CO, PART (A)
you have mentioned that 4.9 is to calculate market value of debt in previous response.
Then, if the ( just assumption) question have asked us to calculate cost of debt, then i could use
4% + 0.9% ( 1 - T ) = cost of debt ???
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COEDEN
If the debt was irredeemable. When the debt is redeemable then you need to calculate the IRR.
Are you watching the free lectures, or trying to learn just by practicing past exam questions?
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