Hi John,
When calculating the value of firm under MBO, we get the value of 4698. Does this value include Mv of Equity + MV of Debt? Why do we not deduct the Mv of Debt in this case?
Pleas help me clarify this. Thanks for your time.
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March/June 2017 Q1 c (Chrysos)
7y ago#14698 is the value of that business unit (it is a business unit - not a company on its own), and the question says they will pay 70% of that value.
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