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Sir if e.g we have to calculate ROCE so do we have to write its general formula i.e ROCE = PBIT/CE x 100% in exam in sec C of paper
Like wise do we have to write general formulas for following in exam in section C of paper?
c) Cost of equity, cost of debt etc
e) financial gearing, interest cover, divid cover, P/E ratio etc?
You do not have to write the formula, but it is sensible to do so.
The reason is that in Section C of the exam, the marks are for your workings. If you have written down the formula but then made a silly mistake, you will still get some of the marks. If all you have done is written down the answer and it is wrong because of a silly mistake, then you can’t get any marks for that part.