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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › P4 Sample Question 1- Fly400
Please help.
Calculate the value of the growing perpetuity at the end of year 6 (note the timing of the year is important) using the expected
FCFE in year 5. This gives a value at year 5 of $1,785.73. I am not getting
$1,785.73
FCFE at time 5 is 118.48, g = 0.04, and r = 0.109
If you put these in the formula you get 1785.79.
FCF (1+g) /r-g. Thank you for the help.
You are welcome 🙂