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factors to consider in mergers

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › factors to consider in mergers

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • May 4, 2016 at 12:45 pm #313676
    Avatarmansoor
    Participant
    • Topics: 423
    • Replies: 541
    • ☆☆☆☆

    Good evening!

    one of the factors given is gearing. i can understand that issuing a loan stock will affect gearing but if a convertible stock is issued will it still affect gearing?and if yes, will it be to the extent of the debt part of it?

    thanks in advance!

    May 4, 2016 at 5:33 pm #313698
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Yes – it will affect the gearing (until it is converted) and it will be a part of the debt.

    May 5, 2016 at 2:57 pm #313832
    Avatarmansoor
    Participant
    • Topics: 423
    • Replies: 541
    • ☆☆☆☆

    thanks!! 🙂

    May 5, 2016 at 4:40 pm #313844
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

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