- This topic has 5 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
- Topics: 29
- Replies: 39
- ☆☆
1. They measured the change in wealth from the TERP to the revised share price. But they calculated existing PE from before the TERP when they clearly said PE would not be affected by the redemption of loan notes. Does this not indicate that PE would be changed ex rights but not after the redemption hence we should calculate the ex rights PE?
No, you cannot assume that from the wording of the question.
The only reason for them having a rights issue is so as to be able to redeem part of the loan notes – the two go together, and the PE ratio will remain as it is before it all happens.
- Topics: 29
- Replies: 39
- ☆☆
One more, in Sec B BPP Risk Management Q302 PGT Co, when they ask to the nearest whole number, I got 169133.4384 hence I rounded of to 169133 because its below 0.5 but the answer scheme says 169134. There’s been many times they’ve done this is there a reason and will I be marked wrong for this?
- Topics: 29
- Replies: 39
- ☆☆
Thank you Sir!
- The topic ‘Grenarp Co BPP Section C’ is closed to new replies.