Cost of capitalForums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Cost of capitalThis topic has 3 replies, 3 voices, and was last updated 7 years ago by Anonymous.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts December 8, 2015 at 11:28 pm #289382 ChrisMemberTopics: 1Replies: 0☆Hi john, How do you calculate the discount factor values to use if for example the cost of capital is 4.2% as the table only gives for whole values,Thanks May 21, 2018 at 2:58 pm #453138 fatinkaParticipantTopics: 0Replies: 2☆Hi! If it was not given a whole values, use this formula: 1/(1+r)^n where r is interest rate; not is years May 21, 2018 at 2:59 pm #453139 fatinkaParticipantTopics: 0Replies: 2☆I meant n is number of years June 7, 2018 at 6:05 pm #457604 AnonymousInactiveTopics: 0Replies: 4☆If you do use the discount factor to calculate MV, yield or interest of a bond, then you must use the formula above.But if it is for a general NPV, you are allowed to round to the nearest whole number.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In