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rb growth

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › rb growth

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
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  • May 24, 2021 at 4:00 pm #621646
    AvatarSyed Ahsan Ali
    Participant
    • Topics: 136
    • Replies: 85
    • ☆☆☆

    How to calculate return on investment (r) from rb growth?

    In the example of the notes r is given as % growth but if we are not given such % growth then how do I calculate (r)?

    Is there any formula for that?

    May 24, 2021 at 4:12 pm #621649
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    There is no example in the notes where r is given as % growth. r is the return on reinvestment.

    As to how you calculate the return on reinvestment, it depends on what information is given in the question – there is no specific formula.

    I assume that you are watching all the lectures and not just using the notes? Using the notes on their own would be pointless because they are only lecture notes. It is in the lectures that I work through the examples and explain and expand on the notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA Approved Publishers and study from there.

    However you choose to study, it is essential that you buy a Revision Kit from one of the ACCA Approved Publishers because they are full past exam and other exam standard questions for practice after you have finished studying. Practice is vital to passing the exam.

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