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John,
In this question when calculating the impact of aquisition on required rate of return in Polar Finance, why we do not add Achorage debt to the total post aquisition market value of debt? Anchorage has gearing 24%
Although it has not been stated it is an assumption here that the debt has been paid off.
(I don’t think you meant to say it was in the December 2012 exam 🙂 )
Ohh, sorry…. i guess i’m thinking too much about the exam day :))))
I wanted to write 2009 🙂
Thank you John.
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