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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Mar/Jun 2017 Q1 Chrysos
Dear sir,
According to the answer, the calculation of estimated equity value is $47944m-$1800m=$46144m
Could I calculate the equity like this?
$47944m*80%=$38355.2m
Thank you.
No.
Although the long term aim is for the capital structure to be 80% equity, that will not be the case immediately after the restructuring because the only debt is the 1,800M.
As is written in the report they could then raise more debt finance so as to achieve the 80%/20%
Thank you sir!
You are welcome 🙂