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Wacc

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Wacc

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
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  • December 6, 2018 at 9:45 pm #488119
    Avatarmaxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Sir please tel me just 1 thing I am still confuse in it that cost of equity, cost of pref shares, after tax cost of debt(IRR), Wacc should be given in percentage or in decimal in Sec C of paper (spread sheet)?

    As you said ealier that it is irrelevant any thing which comes in decimal should be rounded off or not, so suppose if any thing comes in decimal in Sec C of paper (spreadsheet) and I just round off it at 4 decimal place so would it be fine?

    And in case of NPV and its cashflows i.e sales, Vc, fc, tax etc if I round off each of these cashflows and the final NPV to 4 decimal places instead of nearest 000 in sec C of paper (spreadsheet) so would it be fine or not? Would examiner deduct marks for it?

    December 7, 2018 at 6:55 am #488166
    Avatarmaxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Sir in spreadsheet in case of NpV if I do NOT round off each cashflow and just round off the final NPV to 4 decimal places so would it be fine?

    December 7, 2018 at 7:01 am #488172
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You do not lose marks for rounding

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