IAI MAy 2015 Question 5

Discussion in 'SP5' started by sreevarad, Oct 29, 2015.

  1. sreevarad

    sreevarad Keen member

    In the solution regarding split of equity/cash/deb, how equity mix can be 645/1029.5 ? However In the beginning of the financial year, Market value of equity is 650 according to the question. How has this become 645? Any suggestion would be highly appreciated. :)

    Thanks & Regds
    Sree
     
    sreevarad, Oct 29, 2015
    #1
  2. Vihari

    Vihari Member

    weighted cash flow

    Hi Sree,

    It's because of considering the cash flow during the year as well. While so doing it assumes the cash flow being made at the middle of the year.

    Regards,
    Vishwajeet
     
    Last edited by a moderator: Oct 30, 2015
    Vihari, Oct 30, 2015
    #2
  3. sreevarad

    sreevarad Keen member

    Thanks!!

    Got it now! Thank you. There was no assumption stated explicitly in solution. :D anyway, thanks:)

    Regds
    Subhasree
     
    sreevarad, Oct 30, 2015
    #3

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