[druscilla]

Thank you I understood.

On the same question of Chakula Co, part (i) estimate the value of each Kawa Co share if it is a demerger. We use 75% to find the value attributable to equity. Where do we get that?

I thought one could deduct the Mv of debt attributed to Kawa Co i.e. $400m to find the value attributable to Equity.

[druscilla]

How do you get the (Mv of equity) combined company, cash payment through debt borrowing? I can not figure out how $2,933·7m is gotten.

[druscilla]

Thank you Sir for the classes of F6. I enjoyed them and they helped a lot.

[Author]

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