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Finding cost of debt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Finding cost of debt

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • May 26, 2017 at 6:23 pm #388314
    Avatarmyacca1990
    Participant
    • Topics: 153
    • Replies: 164
    • ☆☆☆

    For finding a cost of debt we need to use two discount rates and later have to put their NPV,s into the IRR formula.
    Well as we know the IRR formula can interpolate as well as extrapolate.So it does not matter if we have two positive or two negative values.I had two negative values and my cost of debt slightly differed but i guess thats not matters.
    Please correct me if i am wrong.

    May 27, 2017 at 8:14 am #388386
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are correct.

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