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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › LAHLA CO, MJ21
section 1, question c part (i) asks the value of each kawa share if it is demerged and listed independently. the examiner answer calculated the cost of equity then FCF, and calculates the current value of share. but going forward it calculated the percentage increase in the value of a share in comprison to before if was demerged which comes out as 18.3, my question is that the question only asks the value if demerged,, it doesnt ask for the change in value of the share. why was it calculated in the sample answer and if one forgets or does not do it as such, will there be mark deductions? if this was justified to calculate, why so? is it some rule i am not aware of. thank you.
It is because c part (ii) asks for the % change.