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Sir in this question for basis points 25 and 30 why r we taking.0025 and .0035 rather then .25 and .30
ThanksSir in same question how did they put .037 i know assumption is there of borrowing rate but how did they get this figure.
Thanks25 basis points is 0.25%
Just as 10% = 0.10 and 1% = 0.01, similarly 0.25% is the same as 0.0025.
Lignum is a France and they can borrow at base rate plus 150 basis points.
The French base rate is 2.2%, and so they can borrow at 2.2% + 1.5% = 3.7% (or 0.037)
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