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Sir in sec C of paper earlier you told me that its better to write cost of debt, cost of equity, wacc in decimal instead of percentage.
Sir IRR, ROCE, divid yield, financial gearing etc do we also write these in decimal instead of percentage?In NPV calculations for section C of paper the final NPV we shall give to how many decimal places?
And do we have to round off each and every fig like sales , variable cost, fixed, TSCA, tax etc or do we just have to round off the final NPV?Unless the examiner specifies then any sensible rounding is OK.
Normally you show all the flows (and the PV’s) to the nearest thousand (as you will have seen in my lectures and in the questions in your Revision Kit).
1) So shall I round off all items such as sales, variable cost, fixed cost, TSCA, tax etc to 0 decimal place?
2) Sir in sec C of paper earlier you told me that its better to write cost of debt, cost of equity, wacc in decimal instead of percentage.
Sir IRR, ROCE, divid yield, financial gearing etc do we also write these in decimal instead of percentage?1. Read what I wrote before – usually to the nearest $1,000
2. No – they are written as %’s.
Final NPV should also be given to nearest $000
Wacc, cost of debt, cost of equity, cost of pref shares we should write in decimal or in percentage in Section C of paper? After tax cost of debt of redeemable debt which is IRR, so we should write IRR in decimal or in percentage?
Any figs in decimal in section c of paper should be rounded off to how many decimal places?
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