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CIMA Exam CIMAPRA19-F03-1 Topic 3 Question 107 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 107
Topic #: 3
[All CIMAPRA19-F03-1 Questions]

Company A operates in country A and uses currency AS. It is looking to acquire Company B which operates in country B and uses currency B$. The following information is relevant:

The assistant accountant at Company A has prepared the following valuation of company B's equity, however there are some errors in his calculations.

Value of Company B's equity = 14.16 + 16.03 + 17.67 = AS47.86 million

Company B has BS5 million of debt finance.

Which of the following THREE statements are true?

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Suggested Answer: A, B, C

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