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Dear sir, I found in BPP kit that after a discount, that effect changed the original holding cost per unit per annum even though it hadn’t been provided dependent on purchase price.
Is that right?
Should we always know that if not stated otherwise, the change in purchase price would always affect the annual unit holding cost?
Thank you.
No it is not right.
If the holding cost is given in $’s then it does not change with the purchase price.
If the holding cost is given as a % of purchase price, then obviously it does change.
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