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APV

Forums › Ask CIMA Tutor Forums › Ask CIMA P3 Tutor Forums › APV

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • April 8, 2019 at 2:47 pm #511466
    sureena
    Member
    • Topics: 29
    • Replies: 11
    • ☆

    1. Co financed by debt and equity, same business area, finance to be raised by cutting forthcoming dividend? Does this affect gearing, do we use APV?

    2, Co financed by Debt and equity, financing an expansion through a rights issue. Does a rights issue affect gearing, do we use APV?

    3. Co. is financed by Debt and Equity, same business area, using internally generated funds, does this affect gearing? Use existing WACC or APV?

    4. The Head of Internal Audit reports to a Senior Director and is accountable to the Audit Committee, plus must have access to the Chairman, and the Audit Committee. Who might this Senior Director be, it is not specified in the text?

    April 8, 2019 at 6:04 pm #511480
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    1 Yes. Retaining earnings increases equity so gearing changes. Use APV.

    2 Yes.

    3 Same as 1, above

    4 Anyone but the FD I would think.

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