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q 121 Viagem BPP page 38

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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November 18, 2016 at 1:01 pm #349794
caoimhin23
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Hi
In calculating GW. For the NCI its (10m X 2.50) X 10% is the 10% coming from 100% – 90% or is it from cost of capital assume its the former?
November 18, 2016 at 2:30 pm #349810
MikeLittle
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If the parent has acquired 90% of the subsidiary, the nci holds the remaining 10%
So 10% x 10 million shares = 1 million shares and 1 million shares valued at $2.50 each gives us an nci investment valuation of $2,500,000
OK?
Nothing at all to do with cost of capital
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