The question said $2m out of the $15m long term loan note is bank loan. It also said the bank loan "has a variable interest rate". How should I have calculated the cost of this bank loan for the WACC?
The $15m loan note coupon rate is 7% and the market value was $102.7. Tax is 30%
Ask the Tutor ACCA FM
F9 Sept 2017
I think those were the figures.. Can't really remember vividly
8y ago#2I am not going to answer questions on the exam until I have seen it, and the ACCA has not published it yet.
Forget it anyway - it is over now, and nothing I can say will make any difference.
This topic is locked — no new replies.