(b) (i) Extract of financial position after restructuring programme 5
Appendix One
Manufacturing business unit unbundled through an MBO
Estimate of cash flows 3
Estimate of amount payable to Chrysos Co 2
Selection of higher value unbundling option 1
Appendix Two
Chrysos Co, cost of equity 1
Chrysos Co, cost of capital 1
Appendix Three
Estimate of cash flows 3
Estimate of equity value 2
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18
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(ii) Explanation of approach taken 1–2
Explanation of assumptions made (up to 2 marks per assumption) 3–4
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Max 5
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(iii) Appendix Four
Value from increased ownership 1
Additional value 1
Discussion of restructuring programme on the VCOs 3–4
Discussion of restructuring programme on Chrysos Co 4–5
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Max 10
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Professional marks for part (b)
Report format 1
Structure and presentation of the report 3
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4
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