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June 2011 AQR Question WACC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2011 AQR Question WACC

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 7, 2016 at 10:51 am #331806
    gabbi08
    Member
    • Topics: 135
    • Replies: 181
    • ☆☆☆

    Dear sir,

    Sorry if you find this a silly question.

    In the answer provided in the book, the share price used in the calculation of COE is 250 and not $2.50 (which is the price given in the question) . Why did 2.50 being multiplied by 100?

    Thanks

    Gabriella

    August 7, 2016 at 4:04 pm #331831
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53174
    • ☆☆☆☆☆

    You can either work throughout in $’s or you can work throughout in cents – the end result will be the same.

    If you have watched my free lectures then you will have seen that I always work throughout in cents for this sort of question.

    August 8, 2016 at 8:01 am #331902
    gabbi08
    Member
    • Topics: 135
    • Replies: 181
    • ☆☆☆

    Thank you sir

    Gabriella

    August 8, 2016 at 9:07 am #331928
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53174
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
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