Help on MCQForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Help on MCQThis topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts May 22, 2015 at 10:13 am #247903 olaniyiMemberTopics: 10Replies: 20☆KJG Co has a real cost of capital of 8%. Inflation is 5%. What is the nominal (money ) cost of capital? May 22, 2015 at 11:31 am #247924 John MoffatKeymasterTopics: 57Replies: 54479☆☆☆☆☆You use the fisher formula on the formula sheet.1 + i = 1.08 x 1.05 = 1.134So the nominal cost of capital is 0.134 or 13.4% May 22, 2015 at 1:11 pm #247947 olaniyiMemberTopics: 10Replies: 20☆Thanks sir. May 22, 2015 at 1:15 pm #247950 John MoffatKeymasterTopics: 57Replies: 54479☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In