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Sir,
See BPP exam kits , number 82 NNN co(12/10) , see the answers for part (b) , Where does the 12% of cost of equity come from ?
It is a mistake by BPP!
If you look at the original question (on the ACCA website) you will see that the question said that the cost of equity was 12%.
BPP have shortened the question, but by mistake they have cut out the line that says that the cost of equity is 12%.
