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P 5 ACCA DEC 2014

100200 shih · 2014-09-21 11:37:38

Hi, Anyone else doing the P5 paper in Dec ? I am studying summer paper & stuck on question 1 (iii) the EVA, How does equity = 100 % on the wacc ? The solution = (1/1.3*15.7) + (0.3/1.3*6.5) * (1-25%) I understand everything else but where does the 100 % come from ? Any help would be great !

21-09-2014 12:37PM

#1

100200 shih

Registered Users, Registered Users 2 Posts: 169 ✭✭

Join Date: December 2012

Posts: 155

Hi,

Anyone else doing the P5 paper in Dec ?
I am studying summer paper & stuck on question 1 (iii) the EVA, How does equity = 100 % on the wacc ?
The solution = (1/1.3*15.7) + (0.3/1.3*6.5) * (1-25%)

I understand everything else but where does the 100 % come from ?

Any help would be great !

0