Skip to content

Ask the Tutor ACCA FM

debt/equity

Former userFormer user10y ago

[Content removed at user request]

John MoffatJohn MoffatTutor10y ago#1
It depends whether you are asked to use book values or (more likely) market values. If book values, then the value of equity is share capital plus reserves. If market values then we do not add the reserves (they are the most obvious reason for the market value being higher in the first place). I do actually mention this in the free lecture :-)
John MoffatJohn MoffatTutor10y ago#2
You are welcome :-)
Sign into reply to this topic.