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Fubuki – December 2010

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Fubuki – December 2010

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • May 27, 2019 at 4:58 pm #517563
    amcphail
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Hello John,

    Thank you for your lectures.

    Please can you advise why debt to equity is assumed to be 1?

    Equity = 15m shares * 2.53 = 37,950
    Debt = 40m bonds /100 * 94.88 = 37,952.
    Total = 75,902
    resulting in roughly 50% debt & 50% equity, not equal parts both (which I assume is which 1 means).

    Many thanks

    May 28, 2019 at 7:42 am #517614
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    But if the debt and equity amounts are the same, then debt divided by equity will equal 1.

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