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Hello
Could you help me with this uncertainty please. Do we have to show in the exam to the examiner that we know the formula i.e for irredeemable loan totes Kd=I(1-t)/D or is it enough we just write the number straight away i.e Kd= 12(1-0.3)/92=9.1% using the numbers from the question.
Thank you
This only applies to section C of the exam (because in sections A and B, nobody will look at your workings).
In section C it is fine to write down the numbers straight away. Just make sure that your workings are clear in case you make a mistake in the arithmetic. If it is clear what you are trying to do then you will still get most of the marks.
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