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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Vogel Co (6/14)
1) In this question they removed the value of debt from the FCF when valuing department B is this because Vogel co will not be taking over the debt therefore it should not be included in the value, however if Vogel was taking over the debt we will not remove the debt value?
2) So is it safe to assume when a company takes over another and does not take over its debt it can be valued as FCF-Debt or FCFE, and the opposite if the company takes over the debt it will be valued using FCF?
Kind Regards,
Correct for both 🙂
