Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Marginal WACC
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- November 30, 2015 at 10:58 am #286373
Dear Sir,
Your lectures are amazing and makes syllabus really easy…
We can calculate project specific cost of capital using CAPM etc..
But going through my text book I came across Marginal WACC which also states that Marginal WACC can be used to calculate project cost of capital…. I just want to make sure that Marginal WACC understanding is not required for the exam?
Regards
November 30, 2015 at 12:02 pm #286399Thank you for your comment 🙂
No it cannot be asked. You obviously must be able to calculate the normal WACC and also (if asked for) the project specific cost of capital. But that is all.
(The book should not anyway have called it the marginal WACC – it is called the marginal cost of capital (the extra cost of capital)! But regardless, you cannot be asked to calculate it, not even when you come to P4 🙂 )
November 30, 2015 at 12:15 pm #286404Oh thanks a lot..
November 30, 2015 at 12:16 pm #286406You are welcome 🙂
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