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Ok – but how did you delete it? I didn’t think that students had that facility!
Hey, I basically edited the text and deleted all of it and resaved! Anyway after deleting it all I need to ask it again 🙁
Can I ask how you got your answers to this question, here is my version, probably something very fundamentally wrong with the way I am doing it?
Interest 30000@8% ×2.49 (cumulative discounted rate each year for 3 years @10% cost of capital)= 5976
+ Redemption 30000×.75 (present value in 3 years @10% cost of capital )= 22500
=28476 total liability.
Interest for the year @10%=2847Proceeds 30000
-liability 28476
= equity portion 1524Cheers
Hugh
That seems perfect! Heaven only knows where I’ve got the figures from in the printed solution
Got some correction work to do over the coming close season 🙁
The good thing about this is now I went over it about 10 times, I know loan notes off by heart now 🙂 🙂
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