In Q33 (c), would it be ok to talk about the cost and the level of gearing as the factors. The answer only says 3 marks for debt and 3 marks for equity.
Ask the Tutor ACCA FM
Pre June Mock Q33
4y ago
4y ago#1I do not have access to the pre-June mock exam.
4y ago#2Discuss the factors to be considered in choosing between traded redeemable loan notes and a new equity issue.
4y ago#3Yes, both those would be relevant factors (as would the fact that the loan will need repaying whereas equity does not need repaying, and so they will need to think about how they will repay it).
Sign into reply to this topic.