Eview S/D 17 Q2

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
August 23, 2018 at 6:52 pm #469131
luwennnn
Member
- Topics: 2
- Replies: 0
Dear Sir

Could you please help me regarding cost of equity.

I used the ungeared beta 0.952 calculated ungeared cost of equity 4%+0.952(10%-4%)=9.712%, then use MM proposition 2 formula calculate geared cost of equity 9.712%+0.8(9.712%-8%)(3496/17325)=9.99% however it is different from the answer. Could you please let me know where I did wrong.
August 24, 2018 at 6:40 am #469189
John Moffat
Keymaster
- Topics: 57
- Replies: 54850
This question was in the AFM (P4) exam, not in the FM (F9) exam.

Please ask in the AFM forum.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘Eview S/D 17 Q2’ is closed to new replies.