[taskmaster]

Could you similarly please break it down for Opao Co also(Dec 18), so that I can get a clear difference between the two cases.

Thanks in advance.

[taskmaster]

Hi John, thanks for the quick reply

For my 3rd question, I don’t understand your reasoning, because the $651.1m is calculated by reducing the individual value of Lahla Co and Kawa Co from the combined company equity value.

The same is done in Opao Co (dec 18) where the additional value of $720m is calculated, then how is this $651.1m the additional value of Kawa Co only?

[taskmaster]

Hi John,
I understood your explanation for my 2nd and 3rd doubt, but I couldn’t understand your answer to the first question. Can you please elaborate on the same?

Thanks in advance.

[taskmaster]

Thanks a lot John

[taskmaster]

But in Lirio (Mar/Jun 16), they have reduced interest from Operating profit, then only calculated taxation

[taskmaster]

Thank you John

[taskmaster]

So this logic of first-year spot rates and then for the following years forward rates only applies to FRA?

[taskmaster]

Thanks John

[taskmaster]

But full tax gets paid on royalty, and management charges. Why’s that and how receiving dividends would be any different?

Thanks in advance

[taskmaster]

So FCF using WACC gives Total Value of the company, i.e. equity + debt
And Discounting FCF-int-repayment using Ke gives Value of equity only

Is my understanding right?

[taskmaster]

Thanks a lot John

[taskmaster]

Thanks a lot John

[taskmaster]

Thanks a lot John

[Author]

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