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John Moffat.
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mukori1
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Hi
I am struggling to figure out how to calculate the 2 discount factor eg
Cost of debt
Year cash flow DF PV DF PV
0 (105) ? ?
1-8
8
John Moffat
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You get the discount factors from the tables that are given you in the exam. The 8 year annuity discount factor for the interest flows from 1 to 8, and the 8 year present value discount factor for the redemption in 8 years time.
This is all explained in full in the free lectures – they lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
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