Reading 13 Q24

CFA Level II FRA
#1

For this question, shouldn’t that be 1430+580*0.5? I don’t understand the solution. Thanks in advance.

#2

You mean for the Equity Method?

Under the equity method, in NinMount’s BS:

  • Investment in Boswell (+GBP 320 m)
  • Cash (-GBP 320 m)

No impact on NinMount’s debt (as they did not raise debt for the acquisition) and equity (as this is not a consolidation).

1 Like