Quick Question- CFA Corporate Finance Topic Test #3 England

Okay so I looked at the question. If it were me, I would of, in this case, adjusted the real WACC using .101* 1.0078 to get a nominal WACC of 10.178%. It does say everything is nominal so we should be using a nominal discount rate as you said. In either case the answer is B because it does not even come close to the other two options. I am assuming the answer is B. I did not submit my answer for only question to verify.

Look at the top left corner of the statement, it says “inflation adjusted” so real WACC is required and C is the correct answer.

You are absolutely right on the rationale. I’ll take a look at the question tonight. 

I don’t feel like going back to look at it again so I will just take your word for it ha ha. I remember it said nominal in the item set somewhere so if there was another part I missed then so be it 😉