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Ask the Tutor ACCA AFM

MLIMA CO (JUNE 13)

SSSimrandeep Singh3y ago
1) The Bahari project if of 15yrs. Will I loose out on professional marks if I stretch my calculation table to yr 15 instead of using Annuity Factor? 2) Could you please explain how did the examiner calculate the price per share and the evaluation of whether the bond holders would be happy would the equity for debt swap?
John MoffatJohn MoffatTutor3y ago#1
1. No, that will not lose marks. 2. Without the Bahari project he calculated the value of the company at $564.3m (as in appendix 2) and divided by the 100m shares. With the Bahari project he did the same thing but add on the value of the project.
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