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The Capital Structure Decision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › The Capital Structure Decision

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • Author
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  • February 14, 2017 at 2:50 pm #372385
    sajid7
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi John,
    Hope you would be fine.
    I have a question regarding capital structure:-

    Why retained profit is added to assets less current liabilities/capital employed?
    Thanks in advance.

    February 14, 2017 at 3:02 pm #372390
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    Sorry, but I have no idea what you are meaning.

    Assets less current liabilities is equal to the book value of long-term capital.

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