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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Reflator (c) (Dec 05)Kaplan
Hi John. Would you be so kind as to explain why calculating the value of equity we did not discounted cash flows(FCF mathod)?
I do not have the Kaplan Kit (only the BPP Kit) but I do have the original exam question.
Unless Kaplan have amended the question, part (b) specifically asks for you to estimate whether or not the book value of the equity is likely to grow by 20% per year. So it is only the book value that is wanted, and this has nothing to do with DCF.
Thank you that you find the time to answer.
You are welcome 🙂