ACCA,AFM,Past paper Discussion LAhla & Kawa CO Mar/Jun 2021

[@praisekheng2962]

Why has TAD not been added back as it should? please i need an explanation @Preproots

[@muhammadanas2073]

What an amazing way to calculate gain from share & cash offer. Fantastic

[@nidakaniyarakkal8288]

Thank you so much , you made the share for share exhange and cash offer much easier!

[@mohamednazir6939]

Superb

[@nidakaniyarakkal8288]

Sir, 1 doubt, in part ii 3rd bullet point of the qn, Under impact iof capital structure in cash offer method,why is that the equity is only $2933m instead of $4253m? Lahla owns $4253m of equity cas Lahla paid for each share, so since Lahla paid now Lahla owns it.

[@aliyaadil4716]

Could you comment in here about FCF discount rate: when to use WACC and Ke? Thanks

[@preproots]

its simple always use WACC for FCFF and Ke for FCFE

[@ste678]

@@preproots We were finding the equity value of the company, so we could discount the free cash flow by ke, rather than finding the pv of fcff and then dividing the equity value from that.??

[@udayrajesh8906]

@@ste678 could we do this ?

[@sohaibsiddiqui1228]

Sir je ads kam lagya kren!!!

[@AbdulWahedZwak]

How the total number of share of Kawa Co is 2000? can some one give input

[@AbdulWahedZwak]

because $.5 @1000 equal to 2000 is the total number of shared of Chakula Com not Kawa Co

[@elcapitan8769]

@@AbdulWahedZwak Did you get the answer for this ? I am confused about this as well. Relative number of Kawa co shares should be 490 (2000*24.5 %)

[@thewierd_thewonderful996]

had the same doubt

[@thewierd_thewonderful996]

@@AbdulWahedZwak Yes but he divides it with the MV of Kawa equity post demerger to find 0.71... pls repluy

[@taaha90]

Read the question, when the spin-off will occur, Chakula's previous shareholders will get one share of Kawa for each share they owned in Chakula.