q 50 ,ennea bpp revision kit ,in explanation of figure proposal 3 how did we get $2.318. $2m profit , $25 * 15% ,non current liabilities is 27 to be paid off 27 * (6 -.15 ) am i right or wrong
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2) in eps calculation ,proposal 1 is it correct to compute the interest on additional borrowing $20 m* ( 6 + .25) %
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8y ago#1The reduction in investment will lose 3750000 (25M x 15%). The interest saved is 1432000 (1296000 + 136000). So the net loss is 2318000.
(2) - yes that is correct
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