Hi, sorry for posting 2 different questions in the same post which under the same PYQ as its only minor point.
Q2(b) last sentence: What means of Ennea Co would not able to take advantage of the full asset value if it proceeds with the asset securitisation?
Q5(b) last 3 sentences: why subsidiary share price will be the same as/based on parent Co share price once IPO? its should be independent?
Thank you, hope Sir can explain these bits to me.
Ask the Tutor ACCA AFM
June 2012
7y ago#1Q2(b) The first two sentences of the first paragraph of the answer explain this. "only 90% of the asset value would be converted into securities"
Q5(b) It is not stating it as a fact, but just saying it is likely - it is because the subsidiary is controlled by Kilenc and is very small compared to Kilenc.
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