• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

IMPACT OF FINANCING(EXAMPLE 2)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › IMPACT OF FINANCING(EXAMPLE 2)

  • This topic has 3 replies, 2 voices, and was last updated 4 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 24, 2025 at 5:05 pm #714948
    jonelynnavarro
    Participant
    • Topics: 3
    • Replies: 7
    • ☆

    Hi Sir John Moffat! Thank you for all your helpful lectures, I am quite confused with regards to example 2 in Chapter 12. I know that the 5% interest rate is just an assumption for us to calculate the interest benefit but what I don’t understand is why we use 5% as you say the interest rate in discounting the benefit into their present value? We should be discounting them in cost of debt right? and not in interest rate which is also the coupon rate, or is it also an assumption that the cost of debt is 5% as the problem did not state any cost of debt?

    January 24, 2025 at 5:19 pm #714949
    jonelynnavarro
    Participant
    • Topics: 3
    • Replies: 7
    • ☆

    *cost of capital

    January 24, 2025 at 5:40 pm #714950
    jonelynnavarro
    Participant
    • Topics: 3
    • Replies: 7
    • ☆

    Oh Sir Moffat, disregard my question. I haven’t finish the lecture before asking. I got confused and impulsively ask this question without even finishing the lecture, my bad.

    January 24, 2025 at 7:44 pm #714954
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    No problem (and I have already answered your post about this under the lecture itself 🙂 )

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘IMPACT OF FINANCING(EXAMPLE 2)’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis
  • acowtant on Changes in group structure – examples – ACCA SBR lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in