Hi frnds,
I have gone through the sug answer of SFM may 2011. in that Q4 answer they have calculated cost of capital in different formula and i have calculated by using this formula Po= D1/Ke-g so i got Ke as 22.91% but they got 21.87%. My question is since they asked us to calculate Ke we can use any formulae given in the study material appropreate to solve the question right? it need not be the same formulae what they have given in sug answer right?
another, related to question no 6 ,they have given in the study material Gordons formula in two ways
1. Po=D1/Ke-g ( this is there in theary part of study material)
2.Po=E(1-b)/Ke-g( this is there in illustrations part of study material)
But they solved based on formula 2nd and i have solved based on 1st. will they make it fully wrong what i have solved i am worrying frnds.....
CAclubindia
