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https://opentuition.com/topic/mar-june-2017-chrysos-q1/
in Chrysos mar/june 2017 question 1 you said that
“The proceeds from the unbundling are used to repay other debt and to invest in more equipment (which earns more profit in the future).
The value of the firm after the unbundling is, as always, based on the future expected cash flows.”
my question is why they added cash from divestment in calculating shareholders value in cigno co question sep/dec 2015.
in both cases we are calculating value for shareholders
in cigno sep / dec 2015 unbundle is divested through sell
in chrysos its management buyout.is it because in cigno question we acquire and then unbundle but in chrysos its sell off only?
Sorry for the delay – I did in fact answer yesterday but we were having to deal with a ‘denial of service attack’ on the website so it seems that my reply did not get through to the server 🙁
However, the reason is as you state – because cigno is acquire then then unbundle whereas in chrysos it is sell only.
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