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Urgent! CFAI 2012 Afternoon Session Question 32 Q32

Hello guys. Some help please
In this question to calculate capitalisation rate they use WACC - g which is good but for WACC they use 11% (approxiamtion i guess for 11.28% which we get it in question 31) Now if we use 11.28% instead of 11% we get to an aswer which is closer to A
75.425 / 0.1128 - 0.005 or 75.425 / 0.0625 = 1206.800
now when you substruct the debt 48 you get 1206.8 - 48 = 1158.8
Answers
A 1130
B 1209
C 1257
thank you

Cause it said to use the other analyst’s WACC, that WACC is 11%…

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nospe690 wrote:
My question is why do you subtract BV of debt, shouldn’t it be Market Value of debt?
Coz you use FCFF to value the firm and therfore you use book values to get to FCFF
Then u must substruct book value of debt to get to equity value

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