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Mar June 2017 Chrysos Q1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Mar June 2017 Chrysos Q1

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • March 8, 2018 at 7:42 am #441281
    nickstar
    Member
    • Topics: 24
    • Replies: 23
    • ☆

    Dear sir,

    May I know why the proceeds from the unbundling is not included in the value for shareholders?

    March 8, 2018 at 9:50 am #441335
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54761
    • ☆☆☆☆☆

    The proceeds from the unbundling are used to repay other debt and to invest in more equipment (which earns more profit in the future).

    The value of the firm after the unbundling is, as always, based on the future expected cash flows.

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  • The topic ‘Mar June 2017 Chrysos Q1’ is closed to new replies.

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