- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September 2024 exams. Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › debt/equity
Sir Im confused, some cases the answer consider just debt/capital without reserve, in others it considers the whole capital with reserves.
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 🙂
thanks. I did watch the lecture, but sometime it is not easy to remember everything. thanks once again
You are welcome 🙂