CPA PEP Prep Q&A

Core 1

 
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Core 1
by Sean Wang Send a message - 8 Mar 2017, 2:25 AM
 

Feel free to post questions on Core 1 here. 

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Re: Core 1
by Jennifer McDonald Send a message - 18 Mar 2017, 2:42 PM
 

Question on Finance material F47 (powerpoint) slide # 4.

Is there a calculation error in the WACC? 

=0.03+0.016

=0.046

Less tax (1-0.35)

= 0.046*0.65

=0.0299

2.99%?

Perhaps I'm misssing something very simple ;)

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Re: Core 1
by Jennifer McDonald Send a message - 18 Mar 2017, 2:50 PM
 

figured it out. Tax is only applicable to the debt, so 0.03 + (0.016*0.65) = WACC.

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Re: Core 1
by Yuri Gandibul Send a message - 19 Mar 2017, 9:02 PM
 

I have worked on MSQ.

Please let me know where is this question. Maybe I did it and I have answer.