BBB stores (6/09)

1. The question says that they will be selling 50% of the land and buildings and 50% of the assets under construction. The company is 'stores' and so other than the property it is a retail business. 2. Part (b) is not assuming that the value of the business is 6,800. It is assuming that the value of equity is remaining at 6,800 (the question says to assume this). And yes, the value of the retail business is the remained after removing the value of the property part. (This question was set by the previous examiner - many of his questions were poorly worded. The current examiner makes things much clearer.)