Forums›ACCA Forums›Ungeared beta for discountingACCA ForumsAFMUngeared beta for discountingZzuzana16y agoHi there. Do you know why in Q5 Strayer (BPP kit), they are using the ungeared Ke for calculation of base case NPV? Thanks! ZuzanaZzigot1416y ago#1Assumming that it's an APV question, discounting using ungeared Ke for base case NPV is correct. Because the financing effect is calculated separately.Sign in to reply to this topic.
Zzuzana16y agoHi there. Do you know why in Q5 Strayer (BPP kit), they are using the ungeared Ke for calculation of base case NPV? Thanks! Zuzana
Zzigot1416y ago#1Assumming that it's an APV question, discounting using ungeared Ke for base case NPV is correct. Because the financing effect is calculated separately.
