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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2015 Q3
Can Okazu Co current and the new value be calculated on the FCFE method instead of the Asset-based method or the DVM?
Yes, you could use FCFE and you would get credit for it. However since the question was asking for a discussion you would really need to look at more than one method to get the full marks (and certainly the asset value is begging to be calculated given the information given in the question and the fact that is pretty quick to calculate it 🙂 )
Doesn’t the old equity value of $24,600,000 be remaining in the new company?
No. The existing equity is cancelled and replaced with the new finance.