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Hi John,
I have another question need to ask. In the BPP Revision Kit Question Q35 Case Somax.
I can understand the answer fully until the last part when working out new WACC. Why the answer did not include the planed loan of $260M into the calculation to work out the WACC? Since the new loan will affect the capital structure and effectively affects the cost of capital.
Thank you very much!
I am really sorry but I am away from home until Thursday and so I do not have access to the question.
I will answer when I get back (and please remind me on here if I forget!)
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