In question 3 june 15.venture capitalist agreed to provide leverged finance for 50% equity stake in co through 30 billion and 20 billion loan.And the managment vl contribute 5 million equity share. In the solution sheet when the book value of equity is calculated the sum of 1000,000 is taken. I dont understand why the 5 million generated through bonds have been taken as equity .
The question says in note (iii) that they will buy 5M shares, and in the next line that the management will buy 5M shares – which is a total of 10M shares.