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Jupiter Co (dec 08)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Jupiter Co (dec 08)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 14, 2018 at 10:32 am #467820
    Avatarfahad132
    Participant
    • Topics: 32
    • Replies: 20
    • ☆☆

    with reference to (a)

    i have watched the lectures and solves it again and again but this confusion below

    _ a. so IRR = cost of debt we will take in W.A.C.C without taxing.
    _b. wht if question already gve us cost of debt of reedemable debt , we will assume that it is relevant to take in W.A.C.C and whether it need taxing.
    cost of debt gven in jupiter and it is reedemable and it got taxed see
    WACC = (4.65% × 0.107 × [1 – 0.25]) + (8.5% × [1 – 0.107])
    = 7.96%

    August 14, 2018 at 6:42 pm #467857
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You must watch my free lectures on the cost of capital, because all of this is explained in my free lectures.

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  • The topic ‘Jupiter Co (dec 08)’ is closed to new replies.

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