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Good afternoon,
In arriving at Value attributable to equity for Kawa, why do we multiply Total corporate value by 75% instead of deducting market value of Debt $400m?
From appendix 1 of the answer, the current market value of equity is $1,200 and the market value of debt is $400. (So equity is 75% of the total value).
It says in exhibit 3 that Kawa will maintain its capital structure after the unbundling (and so equity will stay at 75% of the total).
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