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.
please mention the name of question. i have bpp kit
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"