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Dear Sir
In the answer pertaining to the subsidy they give an annuity figure of 3.588
I cannot understand where that comes from.
It is the annuity factor at 4.5% (the risk free rate) for 4 years (the length of the borrowing).
Ok thanks. I thought we were supposed to use tables and round. I am never sure. If we are mid calculation do we round or only round for an actual calculation?
For example:
let’s say the cost of equity of something is 10.79% so when i discount i use 11%
But let’s say I am doing a WACC calculation with that same figure, now do i use 11 or 10.79?
same with this answer, the 4.5% was used
Thanks
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