Kfp 6/09

This topic has 3 replies, 2 voices, and was last updated 12 years ago by John Moffat.

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June 5, 2014 at 3:14 am #174045
aishaasad
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Sir why dont we include the target co equity while calculating the projected gearing which just takes account of debt of target co
June 5, 2014 at 10:17 am #174139
John Moffat
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Are you asking about part (a)?

Because if so, the projected gearing is not relevant – you are asked to calculate the current WACC.
June 5, 2014 at 11:15 am #174152
aishaasad
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Sir regarding part c
June 5, 2014 at 6:32 pm #174373
John Moffat
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If they take over the target company, its equity will be cancelled (because it will not longer exist)
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