Chapter 4: source and coverage limits

# FM4 model and source boundaries
Official full formula sections read: https://resource.cdn.icai.org/87740bos-280825-ch4.pdf .
Costs are opportunity/required returns, not just coupons or realised guarantees. Source costs/rates/betas/fees/taxes are supplied, not live offers/current tax verdicts.
Existing market price versus new net proceeds explicit. D0/D1, percentage flotation base, compounding periods and end-year timing stated. Redemption difference tax relief only where assumed; coupon-only shield not applied to principal/premium automatically. Immediate tax capacity/shields supplied, not presumed from law.
Redeemable approximation labelled versus numerically solved cash-flow IRR with residual checks; large discounts/amortisation require exact scheduled flows. Perpetuity debt/preference examples mathematical, not current issuance-law grants. Preference no shield under case assumption.
CAPM market return versus already-computed premium distinguished; systematic risk and forecasts not guaranteed realised yield. Gordon stable-growth assumptions/ke>g and appropriate payout/model scope applied.
Market equity contains retained claims, not extra cash/market weight to double-count. If pedagogical separate allocation requested it will be explicit, not default. WACC versus marginal/target weights and relevant-risk cash-flow discounting separated. No automatic cost-only optimum capital structure or project verdict.
Private original indicative marking, not official reproduced answers/full bank/live completion. No deployment/siteG1/AuthFirestore/spend/old-ledger changes.