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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Dec 2010, Doric
In determining the value of the company after the management but-out,it is assumed that 30% of the sales revenue lost due to the sale of the frigde division is not recovered.
Pls someone should help me to understand how the 30% was derived.
if u see the question 3rd line there it says that 30% of the parts are sold to fridge division as we r closing fridge division in management buyout proposal then 30% sales are lost .i hope u got clear 😉
