Question 1iv
Examiners Report
Parts (iv) was answered less well. Many candidates were not able to calculate whether or not the capital structure could be maintained or not. It is not enough to state this without adequate application to the question scenario. The answer of the implications of the change in the capital structure, to the valuation method used, was poor in most cases. Answers tended to discuss capital structure changes generally (not required) rather than the implication to the valuation method.