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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of capital article on accaglobal
Hi,
Do you think there is a mistake on the accaglobal website in this article?
It has this formula: re = D0(1 + g) + g / P0
Shouldn’t it be: re = D0(1 + g) /P0 + g
Or am I missing something?
Thanks for checking!
Istvan
Link to article: https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f9/technical-articles/capm-1.html
Yes – it has been mistyped.
The solution to example 1 has typed it correctly 🙂