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Eview cinemas sept/dec 2017

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Eview cinemas sept/dec 2017

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 17, 2019 at 4:38 pm #552923
    Avatarrimshy
    Member
    • Topics: 95
    • Replies: 91
    • ☆☆

    Sir i have a doubt in part a while calculating the impact on wacc i understood how the market value lf equity dealt with but while calculating market value of debt i thought of taking both the loan notes ie 10% loan notes and other loan notes at their market values thus i did it this way

    For 10% loan notes…3200×96/100
    For other loan notes 2700×93/100
    But they have only calculated market value of other loan notes and then taken the value of bank loan at 985
    I understand that market value of bank loan is its BS value but why they have not included the market value of 10% loan notes

    November 18, 2019 at 11:14 am #552984
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Because note 2 of the question says that they are paying off the 10% loan notes.

    November 18, 2019 at 4:38 pm #553014
    Avatarrimshy
    Member
    • Topics: 95
    • Replies: 91
    • ☆☆

    Oh yes got it

    November 18, 2019 at 6:28 pm #553030
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Eview cinemas sept/dec 2017’ is closed to new replies.

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