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Hi chris,
Its me again
Of course its me lol
Anyway,
Question regarding yogi,
10% loan notes ROCE 21.8%
The answer says that finance cost is much lower than the 2015 ROCE and it will have had a detrimental effect on overall profit available to shareholder.Can you please let me know why is it detrimental and how?
also they say they that the selling price of the D’o (sold division) was low.. how is it low? How are we to gauge if something is low or high? how much would a high be anyway?
@aarina said:
Hi chris,Its me again
Of course its me lol
Anyway,
Question regarding yogi,
10% loan notes ROCE 21.8%
The answer says that finance cost is much lower than the 2015 ROCE and it will have had a detrimental effect on overall profit available to shareholder.Can you please let me know why is it detrimental and how?
Hi,
It has a detrimental effect because the debt holders are paid out of company profits before the rreceive the dividend. The payment of the interest therefore means that there are less profits available to the equity shareholders.
Thanks
Thanks. Where have you been quite a delayed response lately. I know you have an ACTUAL life to attend unlike me right now. But i love life right now. All me and me. So yeah just want to thanks for the time contributing knowledge here. i shall stop asking why was i a lost lamb in uni last time. I had such shallow thoughts of acca years ago…and undermining my capabilities. Its alright new eyes realize.
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