Rtp may 12 fin repo eva doubt

Final 786 views 4 replies

ANIL

Forensic services

242 Points Joined February 2012

Dear Friends,

Could you please help me in solving the query posted below :

Reference :

Pg 24 - may 12 rtp - Qn 19 - Economic Value Added

Could any one please explain how 3717.90 (Loan Funds) was arrived at in the calculation of Cost of Debt ?

Replies (4)

Mayank Ahuja

"Learner"

586 Points Joined October 2008

Hi Anil, even i noticed a fault in solution, Correct fig of loan funds=8100, & Cost of debt comes out= 4.54% (approx.) Waiting fr other members view....

Yes Mayank & Anil, Cost of debt comes out to be 4.54% and its contribution in WACC amouts to 0.454, correct amout of loan funds is Rs. 8,100 lakhs, I guess there is some sort of error in the physical copies of RTP But, i have recently checked the May, 12 RTP as made available on ICAI's BOS portal and the solution in that RTP is absolutely correct, amout of funds is given as Rs. 8,100 there in...
You may also check it out -
https://220.227.161.86/25774rtpfinanewmay2012_1.pdf
The solution is given on page 67
Best of luck for your preparation :)

Jinal Sanghvi

Self Employed

34 Points Joined May 2009

I agree... Its a mistake... Cant call it a typing error tho... coz the entire figure has come from space.. but the best part is that the institute rectified it... :)

Jinal Sanghvi

Self Employed

34 Points Joined May 2009

Must say that our institute is proving of great help... They rectified the mistake so fast and the new modules and practice manuals are awesome... and also the model test series the conducted are so useful... Thank you ICAI... <3