Page 402 - F2 Integrated Workbook STUDENT 2019
P. 402
Chapter 19
Chapter 2
Example 2.1
40
K e = . = 12.5%
360 – 40
Example 2.2
40 × 1.07
K e = . + 0.07 = 20.4%
360 – 40
Example 2.3
Answer = 14.3%
g = ((17/10)^1/6) – 1 = 9.25%
NB. To the power of 1/6 is equal to the 6th root.
Cost of equity
k e = (17 × 1.0925)/365 ) + 0.0925 = 0.1434= 14.3%
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