Question 26 mock exam 2012?!!!

why we sould use capital of 100000 in economic profit formula!!!

capital in year 1 is 75000!!!

(in capital budgeting chapter in one question used capital of year 1 )

I don’t understand why there’s inconsistency like that, have th same confusions, I. Schweser they use ending. Damn, th D day is almost there Nd now we r stuck with their inconsistence

Should always use the starting Capital.


is that the question where it says Debt to Assets is 50%?

If so… how do they come up with weight of d=0.5 and weight of e = 0.5…

nooo,its not that question