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Hi!.. please I need help on how they arrived at 0.712 in the solution for current price (Pa=15m ×0.712= 10.68) in Furlion Co (March/June 2016) question on the revision kit.
It’s in part B (Advanced investment appraisal) a question on BSM.
I have moved your question to its own thread. In future, if you have a question, please post your own thread instead of posting it as a reply in an unrelated thread.
Discount factor is 0.712 (12%, 3yrs)
Check the Present Value tables you’ll see the 0.712