mock paper question 1 Orihuela co sa

Pparip14y ago

has anybody done mock paper on open tution website. i have claulated Kd for question 1 as 5% as i took the value of bond as 100 and not as 110 the marker has used 110. Can please somebdy explain why as i think i am missing something to understand.

thanks

Aaccastudent11014y ago#1

Hi, I’m also having a problem with part (a)Calculating WACC:
In determining Kd the solution shows that the bonds will be redeemed at a 10% premium to par, whereas the question does not state that this will be the case?
Please help!

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