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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Business valuation McQ
Sir there is past exam MTQ question that why might valuations of the equity and loan notes of Coral Co be necessary?
(1) The company is planning to go to the market for additional finance
(2) The securities need to be valued for corporate taxation purposes
(3) The company has received a takeover bid from a rival company
Correct ans was 1 & 3. But in my opinion 2 should also be the correct ans as it is mentioned in study text that business/securities need to be valued for tax purposes
It is only the investors that might need values for tax purposes, and corporate tax is not relevant for them – only income tax.