Weighted Average Cost of Capital (WACC) simplified | ACCA FM / F9 | Question Fence

Learn how to solve a WACC (weighted average cost of capital) question, ACCA question Fence, June 2014. Check out how to use the IRR function at 3:20: this will save you time and get you closer to a pass. Learn how to pass your CBE FM ACCA exam.
Help, tips and spreadsheet exam technique to pass the ACCA CBE FM exam, question Fence.
*************************
Steve Willis ACCA
www.stevewillistraining.com
How to pass ACCA exams
Weighted Average Cost of Capital Help
#acca #accaexams

[@atharvakulkarni3516]

Hi Steve Willis Sir your videos are really helpful, they helped in passing PM and are now for FM, can you please solve another WACC question especially TANZA CO, I am unable to understand the Present values used there, thank you.

[@SteveWillisACCA]

Yes, soon

[@semalkhan14]

this is awesome

[@SteveWillisACCA]

Glad you like it!

[@semalkhan14]

@@SteveWillisACCA is there any CBe technique for money market hedging

[@charliepaviour]

Hi. For the ordinary shares, cost of capital calculation you ended it by doing the market return 0.11 less the risk free 0.04. But on another video of yours for the question Corfe, you didn't take off the risk free rate at the end of that calculation. Which is correct or why was it done on this question and not the other? Thanks

[@SteveWillisACCA]

For WACC, sometimes they give you (a) "market return" and (b) "Risk Free." You subtract B from A to get (c) 'risk premium'. However, sometimes they just give you C, so you don't need to do the previous step.

[@wazeerabdool7617]

Hi Sir, But what about question 219 Dinla Where there are preference shares and Bank loan. Can we use the same approach?

[@SteveWillisACCA]

You can use the approach for any WACC question: check kzbin.info/www/bejne/hWWxi2hpr5iVaa8

[@huzaifasaifuddin9535]

Hello sir.. Is it allowed to use the IRR formula in exams ? Because my tutor taught me a different tecnique to calculate the IRR with 2 different discounting factors just like the workings mentioned in the exam kitt .. please let me knw

[@SteveWillisACCA]

Yes, the IRR Function is fine to use--this was stated at a learning provider's conference and you can find this online.

[@huzaifasaifuddin9535]

Thank you so much sir .. God bless you

[@karts2010]

@@SteveWillisACCA Hi Steve - IRR function is not working, when tried in practice platform

[@SteveWillisACCA]

@@karts2010 That's strange, it works fine here. I'm looking at the FM specimen exam and typed "=IRR(B6:E6)" into a cell and it gave me the IRR...

[@maoriju]

WACC Prince !! 😀 typo …

[@SteveWillisACCA]

Sorry? :) not following