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pursuit 6/11

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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March 9, 2017 at 12:18 pm #377043
genty
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Why haven’t they subtracted value of debt from the value of the companies to find whether the acquisition would be beneficial to shareholders of pursuit?
March 9, 2017 at 2:29 pm #377105
John Moffat
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It is because part (i) asks for a free cash flow to firm approach, and since the debt of Pursuit is being paid off, the gain in value of the company will be the gain to the shareholders.
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