coeden co

In the same question for calculating cost of capital for hotel service only where did the figure .769 and .231 came from.And the question said the fund raised will b used to pay 70% of the outstanding current liabilities what have they done with that.Please help sir.

You will have to tell me which past exam the question is from - I cannot remember the names of every question in every exam :-)

Hi, If you look back at the question it stated that the company credit rating would increase from BBB to A+ if non current liabilities were reduce by 70%. Therefore the original 42m×30%=12.6m. Hope this helps.

Thanks natalie28 :-)