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P4 Practice Kit Q38 A

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P4 Practice Kit Q38 A

Q38 A I cannot work out how the Value of Equity for J Company is 88. Surely it should be the market value of equity? (share price 580c x 50 mil shares = $290) but the solution says $88- I don't see how.

Thanks

May 20th 2015 AN ACCA USER 120 Points
Recategorized May 21th 2015 AN ACCA USER

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please mention the name of question. i have bpp kit

May 22nd 2015 AN ACCA USER 980 Points
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BPP Q 38 MERCURY TRAINING

Jupitor co Market gearing is 12%
Hence 88% is Equity. So debt is 12 and Equity is 88.
Moreover 580c is issue price not current market price. Read carefully "issue"

May 22nd 2015 AN ACCA USER 360 Points
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Hello ACCA community,
Does anyone have any P4 September Exam tips
August 20th 2015 AN ACCA USER 160 Points
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