[maihan]

Thanks for your reply. I’ll make an assumption / explanation for this point.

[maihan]

Dear Tutor,

In the answer of BPP book, Gordonbear example, the benefit of being able to pay a lower interest rate is not adjusted for tax.

Please explain.
Thanks.

[maihan]

It’s quite easy. But I still make mistake 🙁 . Hope that trying to do most parts of questions will help me to earn enough mark !!!

[maihan]

A corporate parent might add value to its business units. Ashridge portfolio used to consider opportunities for parental development, and finally decide whether or not to invest / divest its business units.

You can see Article regarding mergers, takeovers in Apr 2010 which mentions this matter.

Question 2, Dec 2008, MMI acquired Boatland and assessed its performance, and come to conclusion to divest Boatland because of inappropriate assessment of considering Boatland as a value trap business instead of Heartland business.

[Author]

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