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Cost of Capital (Part A) Question

Forums › ACCA Forums › ACCA FM Financial Management Forums › Cost of Capital (Part A) Question

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by neilsolaris.
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  • November 15, 2013 at 9:53 pm #146225
    sonria
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    Hi Sir,
    Thank you for showing us how to calculate to the fourth root, however you didn’t mention how to calculate to the fifth root if five years is given in the exam. Would it then be a matter of calculating to the third root and then to the second root? Or calculating to the second root first and then the third root second? Or is there another way?
    Thanks for your help and quick response as exam is only 3 weeks away 🙂
    Sonria.

    November 18, 2013 at 9:10 am #146553
    neilsolaris
    Member
    • Topics: 59
    • Replies: 415
    • ☆☆☆

    The are at least two ways of getting the root using my calculator, and I should think your calculator will probably have the same functions.

    You can either do it the way you’ve been doing. So the 4th root of 100 would be 100^(1/4) = 3.16. The 5th root would be 100^(1/5) = 2.51.

    The way I do it is, with my calculator, I have a root button, where for instance, if I want to find the 5th root, I can enter 5 to the left of the symbol, and 100 to the right. I’m sorry, I don’t know the technical terms! This is what the symbol looks like.

    https://magoosh.com/gre/files/2012/08/pnsr_img2.png

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