MORADA CO SEP/DEC 16

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March 2, 2023 at 6:15 am #679916
bucky709
Participant
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Hi, in this question the examiner has calculated the cost of debt as after tax yield.
I used the IRR to calculate the cost of debt. They give slightly different answers.

Are both methods okay to be used in this case?
March 2, 2023 at 8:42 am #679954
John Moffat
Keymaster
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Although the examiner has done that, strictly he should have calculated the IRR and he has confirmed that would certainly have got full marks 🙂
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