[kaplanvik]

Could you help me please with the $5 m. retained earnings in a) ii). According to proposed financing the bank loan $65m and finance costs 10% per annum. In the 2016 P&L forecast finance cost 3m. It is 8,5%*30$m + 9%*$5m=$3m. Why do we not recalculate the retained earnings $2,4m according to new finance costs?

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