- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
- Posts
Proportion of assets remaining within Nubo Co
30% × ($550m + $122m) = $201.6m
Add extra cash generated from the sale of $99m
Maximum debt capacity = $300.6mTotal additional funds available to Nubo Co for new investments = $300.6m + $99m =
$399.6mPlease expain the calculation part of 300 m why they took spare cash?
Also why again they took spare cash if it was added earlier?The assets that remain within Nubo are 201.6 as you have written. In addition they get cash from the sale of 99. If everything stopped there then they would have 99 cash available to invest.
However they can borrow up to 100% of the asset value, so in addition to the 99 that they already have available (because it is in cash) they can borrow another (201.6 + 99), which is the new asset value 🙂
- You must be logged in to reply to this topic.