20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

March/June 2017 Q1 c (Chrysos)

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 22, 2018 at 4:26 pm #468892
Ng
Member
- Topics: 25
- Replies: 3
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.
August 23, 2018 at 6:04 am #469009
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
4698 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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘March/June 2017 Q1 c (Chrysos)’ is closed to new replies.