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Hav Co – Jun 2013

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Hav Co – Jun 2013

  • This topic has 5 replies, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 15, 2014 at 3:00 pm #210232
    hangftu
    Member
    • Topics: 4
    • Replies: 9
    • ☆

    Dear John,

    Could you please explain why in part c – cash and share offer, the answer does not calculate the number of new issued share and new Hav Co share price? They use the current share price of &9.24. This is different from Sigra – Dec 2012.

    Thank you!

    November 15, 2014 at 4:05 pm #210257
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    Yes – he has done it differently, and I cannot give you a reason why. What is being asked is almost identical.

    I think he should have taken the approach in Sigra in both answers.

    November 15, 2014 at 4:32 pm #210266
    hangftu
    Member
    • Topics: 4
    • Replies: 9
    • ☆

    Thanks Sir for your so quick response! I have one more question. When calculating equity value, should we minus total liability or non current liability only?

    November 16, 2014 at 9:19 am #210350
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    For equity you should subtract all liabilities.

    (In future, if you want me to answer then you must ask in the P4 Ask the ACCA Tutor Forum – this forum is for students to help each other.)

    November 17, 2014 at 5:52 am #210590
    hangftu
    Member
    • Topics: 4
    • Replies: 9
    • ☆

    Sorry for posting in the wrong forum and thank you so much for your help.

    November 17, 2014 at 9:26 am #210637
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
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