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Doric Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Doric Co

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarJohn Moffat.
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  • August 22, 2019 at 1:12 pm #528412
    Avatartoushiga
    Participant
    • Topics: 424
    • Replies: 171
    • ☆☆☆☆

    Hello Sir,
    For Dec 2010 Q1 part (ii) and (iv)

    1)Under the discussion for the corporate restructuring and management buy out for Unsecured Bond Holders

    “With the restructuring option…just over 87% of the company for a total investment of $210m” &
    “270m share for $210m which is 77.7c per $1 par value”

    How the $210m being calculated/found in the question?

    August 22, 2019 at 5:54 pm #528443
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    It is straight from the question.

    The unsecured bondholders are currently owed $120m. The bonds will be cancelled and they will also contribute $90m in cash. 120m + 90m = $210m

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