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the answer to part b seems to be contrary to the year 1 forecasts.
we see an increase in the EPS and a drop in the WACC. So why the negative tone of the answer?
i wd have probably written a positive tone…..
can u please comment?
First, there is no one correct answer for part (b), and you would not be expected to produce all of that in the exam.
Overall I don’t really think the tone is that negative – the last two paragraphs and part of the third paragraph are fairly positive.
It is reasonably well balanced 🙂